Sporadic posting and life’s unexpected events

I usually pride myself on updating Consultant Journal regularly. In fact, I often have a stash of posts written well in advance – I just most more spontaneous ones as they occur to me. Well, that all ground to a halt recently.

You see, I decided to sell my home. That meant getting ready to stage the property, clearing things out, redecorating for broad appeal, getting stuff into storage, keeping the place immaculate for showings, negotiating with buyers and more. Then I ran into a few hiccoughs as I tried to buy a new home. I’ll keep the details off the web. And then, after buying, I ran into another emergency – and I got really, really sick. And now I’m renovating…while starting a new contract with a new business client.

So things at Consultant Journal have been on hiatus. And that’s been very challenging, because I love writing articles here. Funny enough, many of my favourite posts have been about work-life balance.

Well, work-life balance is far from a perfect thing. I’ve spent the past to months in a 95-percent life, 5 percent work balance. But thing are steadily swinging the other way and I think I’ll be back to “normal” pretty soon. Whatever normal mean.

I’m pretty thankful to run a business. With the patience of my clients, I’ve been able to make it through this unpredictably challenging time. My business is flexible and a good portion of it can run without me.

But I love writing for Consultant Journal and look forward to posting more frequent articles. I’m glad you waited.

Thank goodness for self employment

The past two months have been a blur. Between selling my home, taking on a new client, taking care of sick kids, managing volunteer commitments, buying a home and just the regular routine of parenting and having a life, I’ve felt stretched in all directions.  And I’ve never felt more fortunate to work for myself.

Because I work for myself, I can move things around. Home needs to be staged? Okay, I’ll run out to the store, buy accessories in the latest colours, and stage my home myself, allowing it to sell in just days. I’ll just work in the evening instead. Kids sick? No problem. I’ll move some meetings, work while they nap on the sofa, make them honey-lemon drinks while I make administrative calls, and mop their brows in between emails. Volunteer organization needs some help? Okay, I’ve got a few minutes to provide over-the-phone consulting while waiting for my computer to install updates — and I’ll write them a fundraising letter while waiting for my laundry to finish, before heading out to lecture at the university a few minutes from here. Need to do a home inspection? Okay…I’ll just answer emails while following the inspector around and chatting about roof lives, concrete spalling and planter boxes.

Sometimes, it all feels a bit frantic. There’s a lot to juggle. But I’m the kind of person who has a lot on the go. I get by with my Google calendar and smartphone (and sometimes my tablet) when I’m not in the office. If I worked a regular job, I’d have a lot on the go, too. I always have. But I swear it’s all a lot more relaxed because I’m self employed.

You see, I don’t have to worry about getting fired. I don’t have to beg a boss to let me work from home, let me run to appointments or wait around for a repair person. In fact, most days, I work from home – not because I can’t afford an office, but because I can’t afford to give up the time involved in managing yet another place in my life. Right now, as I’m typing this, I have tea boiling on the stove, a turkey breast roasting in the oven, laundry going, and texts from my realtor and mortgage broker coming in. I just hung up with the property appraisal folks. This morning, I took my kids to school late (they’d needed a little more sleep) and I got to do a minute or two of jazz dance with the class before heading off. I didn’t have to ask anyone for permission. I just had to make sure it all jived with my deadlines and my appointments.

Now, the price I pay for this lifestyle is that sometimes I do work odd hours. I will sometimes send out emails at midnight. I’ll work on a  Saturday. But that’s all a choice and it’s almost certainly because I’ve made a trade off somewhere else. I check my email (sometimes infrequently) when I go on vacation, but I also take a lot of vacations – not the two or three weeks that most people do. In fact, my kids were off sick for four days this week and we’re about to enjoy two weeks of Spring Break together. That’s more time off than most people have all year.

After 16 years of working for myself, I can’t imagine life any other way.

Is a business plan necessary?

Is a business plan necessary? Maybe if you’re looking for investors or lenders or hoping to reassure a spouse or yourself. But creating a plan opens doors.

The Number One Secret Behind Charging Higher Fees

If you want to charge higher fees, you can’t be a run of the mill consultant. When people really value what you have to offer, it’s because of scarcity.

Now, economists talk about scarcity all the time. You’re heard of the supply and demand curve. And prices emerge where the two lines cross. Where there’s a supply of services and a corresponding demand. If there is a scarcity of supply and demand is strong, then prices will be higher.

Just move

 

 

 

Related:

How to become a consultant

Write Your Business Plan Now

 

Learn to freelance and change your life

Learning to freelance or consult means more than just picking up a project here or there. It’s a chance to improve your financial profile, broaden and deepen your experience, pursue your hobbies and interests and more.

2013 – the year to raise your rate

If you haven’t raised your consulting rate in a while, you’re probably losing money. And if you’re still charging by the hour, you might want to look at other options.

Fast away the old year passes

The clock is winding down on 2012, but there are a few days left still. I’m maxing and relaxing on a stay-cation – a vacation at home. But my mind occasionally does turn to my business dreams for the year ahead, even if many of them are rooted in how I want my personal life to look.

When life gets in the way

Sometimes, life gets in the way and I end up hitting the pause button with work projects. But, at the same time, my self employment as a consultant affords me work-life balance that would be hard to get anywhere else.

What to do when clients lowball your fees

Clients will often try to lowball your fees, sometimes comparing your rate to a salary. Here’s how to manage.

Binders Full of Women – a book

Mitt Romney’s quote about binders full of women has gone viral. To contribute to the trending meme, I thought I’d put together an ebook that details binders of women. It’s a handy reference for anyone who wasn’t already aware of the bind women find themselves in.

Binders full of women - a list


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Get the book on Amazon for the Kindle. (You can read Kindle books on most devices, using the Amazon Kindle Cloud Viewer. It should set up on your device pretty quickly and easily.)

Hot models for high fees

Seven super hot models – see our video on the hottest models for setting your fees.

Assessing risk in meeting new clients

Business owners – including freelancers, consultants, coaches and counsellors – who meet with clients alone should consider these points for assessing risk.

Safety tips for meeting new clients

Consultants and freelancers need to consider their safety when meeting new clients. Coffee shops are popular venues, but consider these other tips for reducing risk.

September feels like a new year

I might do my New Year’s resolutions in January, but September is still like a new year to me. I’ve never shaken that back to school feeling.

Be clear on why you’re doing this

Do you know why you’re consulting? The reasons you may be in consulting are as varied as the kinds of people who consult. But take some time to think about why you’re in consulting.

Second jobs – working on the side

Second jobs are increasingly popular. Millions of people take on side jobs, gigs, contracts and part-time work, so that they can get ahead, build experience or have a little fun.

Retire and consult – a consulting business launch guide

Retire and consult – oh, those Babyboomers! Always doing things their own way. Well, here’s how Boomers can create a plan to retire and consult.

Choosing the right consulting business

Feeling a bit fogged in when it comes to choosing or re-tuning your consulting business? Help yourself find focus by doing a personal inventory and self assessment.

Introverts as leaders and entrepreneurs

Entrepreneur tends to make people think “extrovert”. But, in reality, many successful entrepreneurs and change makers have other profiles.

Consultant salary & pay 101

Consultant salary and pay information can help you navigate the path to solopreneurship, self employment or traditional jobs at big firms. Yet it’s hard to find that information because consultants’ salaries or fees…

Rules for consulting

 

How to build your brand at a wine & cheese

Entrepreneurs can choose from an array of networking events. And you can use those events to build your business, if you think about it from a strategic point of view.

Noise canceling headphones – any tips?

It’s noisy as heck in my office. I need some noise canceling headphones. Got any advice?

Confession

I’ve got a confession to make. It’s one I haven’t shared with very many people. In fact, I’m not even sure my closest friends know.

Dealing with stress as an independent consultant

The following guest post is by Ryan Rivera.

Jane has been an independent consultant for 2 and half years now, working for various business firms who seek her expertise on identifying and determining management flaws and problems. She analyses data and prepare reports, citing the difficulties and improvements the company should and must implement. Her job description also involves creating a detailed and quality long- and short-term management tactics to help increase efficacy of management control as well as increase productivity and profitability of the whole enterprise.

9 tips for self care in business

Self care – it’s key to business success, even if you think it’s a wishy-washy term. While ignoring your personal needs might help your business get ahead in the short term, it’s the path to burnout in the long term. Sometimes, taking care of business means taking care of yourself.

Consulting goes mainstream

More and more people are choosing consulting as their primary or secondary mode of income. Consulting as a career has become widely accepted, and more frequently preferred in today’s busy world. There are many reasons why consulting has gone mainstream: do any of them apply to you?

Steve Jobs, Apple and being an expert

I tripped across this photo of Steve Jobs’ notes for the iPhone launch. Even the head of Apple Computers needed notes to navigate the iPhone. The expert needed help.

Hope and creativity – Caine’s Arcade

Last night, I watched Caine’s Arcade, a short film about the arcade a 9 year old boy from South LA has built by hand. Using cardboard boxes from his dad’s car parts store and a whole lot of imagination, Caine has created an arcade that rivals any you’d find downtown or at Chuck E. Cheese’s.

6 easy mistakes consultants make

Easy mistakes catch the best of us off guard. After 15 years as a consultant, I’ve seen it all – and done it all. Fortunately, I’d like to think most of my mistakes were in the early years and that I have at least moved on to mistakes that take experience to make. Ha! So I’m in a great position to point out six easy mistakes many people make with their consulting businesses.

How to manage home office clutter

You may be asking this question as you stare at your disorganized desk: how to manage home office clutter? It isn’t as difficult as you might think. Just follow these few simple steps, and you, too, can have a clutter-free office space so that you can concentrate on the important stuff.

On comments and tedium

The previous post here covered finding time to work on your business. And, of course, I’ve been talking about business plans a lot lately. In spite of all this, I’m doing an awful lot of work *in* my business right now. And some of it is just…tedious!

Finding time to work ON your business

Are you finding time to work ON your business, or do you feel like you are just stuck in a hamster wheel? Perhaps you are in a rut, and don’t realize it. With just a few changes, you can approach your business with a new outlook. You may have heard of all of the following concepts, but are you applying them to your own business? Make the time.

Tax time, anytime

Tax time doesn’t have to be stress-filled. Are you one of those people who shove receipts and invoices wherever is convenient, then panic when you can’t find them? Do you have to sort through a mountain of paperwork when tax time rolls around? Why don’t you be kind to yourself and promise to do tax time, anytime, from here on in?

What if every day was the weekend?

Write Your Business Plan Now launches

I’m pleased to announce the launch of Write Your Business Plan Now, a kit I put together to help real people write business plans. I mentioned I’d be releasing the guide a few weeks ago, but I went back and added in extra resources to make it a complete, all-in-one kit. Inside the kit, you’ll find the resources I actually use in my business every day to help my clients with their business plans. I showed the kit to one of my clients and she exclaimed, "This is what everybody needs!"

Click here to learn more about Write Your Business Plan Now.

The kit includes a full guide to writing a business plan, a Quick Start Guide and Word template you can start working on right away, Excel spreadsheets that you can just plunk numbers in and more. I based Write Your Business Plan Now on the problems I saw people struggle with when I was a business advisor for a self employment program, along with the challenges I see my own consulting clients tackle.Moreover, "business plan" is one of the most popular searches on this site, so I want to make sure Consultant Journal readers have everything they need.

Red Hot Chili Peppers mixed up with bag piper band

What happens if you confuse Red Hot Chili Peppers with a bag pipe band called The Red Hot Chilli Pipers? You may know the famous alternative band, Red Hot Chili Peppers. A client emailed me recently to say she’d been looking at their videos on Youtube. She was looking at one clip that featured bag pipes and thinking Flea and the boys looked a little less gaunt than usual.

Why starting a side business beats the stock market

Starting a side business may be the best thing you can do to get ahead. As with second jobs, a side business can be a way to generate income on top of your existing work.

Nobody told me

A poem about consulting from a home-based office. An ode to my experience, complete with trials and tribulations.

Analysis paralysis cures for small business owners

You see the ball flying toward you, but you somehow can’t get out of the way. You’re too busy looking at all the other options – run, jump, dive, heck, even duck. All you need to do is stick your glove in front of the ball, but you can’t even do that. You can’t move a muscle.

5 tips from a Vancouver business plan writer

Wondering how to get going with your business plan? Check out these five tips for moving ahead.

Write Your Business Plan Now

Last summer, when as I was doing some business plan coaching, I realized that it’s near impossible to get a good business plan book. Yet many small business owners need a good guide through the process.

Last day to get the Consulting Start-up Course for $127

Today’s the last day to get the Consulting Start-up Course (Become a Consultant – How to Make the Leap) for just $127. That’s 35% off the regular price!

Become a Consultant - Consulting Start-up CourseThe course includes audio lessons, worksheets, exercises, discussion forums and a full guide. You also gain access to the full Consultant Journal library – Discover Your Inner Consultant, Consulting Fees, Become a Consultant and more. The ebooks alone are worth more than the $127 tag, so this is a great opportunity.

Just use discount code jan12 at checkout – offer expires tonight at midnight!

How to use LinkedIn to build expert status

How to use LinkedIn to build expert status – Are you wondering whether LinkedIn can help you build your expert status? Curious whether LinkedIn is anything more than just a fly-by-night social media portal?

LinkedIn is a unique social media site that can be a powerful tool when used appropriately. And one of the most effective ways to use LinkedIn is as a tool to help you build expert status.

8 reasons the economy means opportunity

Even when the economy is in the dumpster, opportunities abound for consultants paying attention.

Interns should work for pay

Interns – should they get paid for the work they do? While some fields seem to hold unpaid internships in high regard, those same internships may be blocking people from ever entering the field.

New year, new ideas

My thoughts about how to approach 2012. What are yours?

Sample business plan for consulting

Using a sample business plan for consulting – wondering if you should use a sample business plan from consulting or put one together on your own?

8 consulting lessons they don’t teach you in school

8 consulting lessons they don’t teach you in school – From setting rates to firing clients, university curriculum doesn’t quite cover the ins and outs of consulting! Here are 8 consulting lessons that you won’t learn in academia:

1. Marketing doesn’t have to be a pain.

Business plans for consultants

Putting together a solid business plan can help you get control and confidence in your business. Consider the following points as you work on your plan – and take a look at why a business plan can help if you haven’t already got one.

Marketing – Turn a necessary evil into self nurture

Many small business owners hate marketing and react as though they’re doing evil in their work. But, done right, marketing can be an act of self care.

Putting together a business plan

Get past the overwhelm and into the power seat with your business plan. Put together a business plan with these tips.

What is consulting?

What is consulting? Consulting is a career choice that offers professional or specialized advice to individuals and businesses for a fee. As a consultant, you will likely work freelance, although some consultants are employed by large corporations. A consultant may have one specialty or many. You may choose consulting as a full-time career or as a second job that provides extra income.

Consulting fees

Consulting fees and how to set them can be a challenge to new consultants. You might be wondering how much to charge or be unsure of your own value. Many new consultants start by undercharging. However, setting your consulting fees in the right range is easier than you think. There are several approaches to setting consulting fees that you can take. In this article, hourly, daily, fixed, and competitive rates will be examined.

Consulting company business plan

Consulting company business plans – Are you looking for a business plan template or a boiler-plate that will help you put together a consulting company business plan? There are a variety of resources here at Consultant Journal that will help you in writing your consulting company business plan.

Oops! Major technical problems on this site!

Oops! I was updating the site and I made a major, major typo. Somehow, I overwrote the entire look of the site. Please be patient while I wait for my web developer to wake up and rescue me.

Update: I fixed it all by myself!

Medical insurance coverage

Medical insurance coverage is something we need to consider carefully. Even minor medical needs, such as prescription drugs or minor health problems, can add up if you do not have adequate medical insurance coverage. In the case of major illness or accident, which can happen to anyone at any time, proper medical insurance coverage is invaluable.

Typical consulting fees

What is a typical consulting fee? Good question. Unfortunately, the answer is that there are no typical consulting fees! Consulting is made up of so many variables and factors that there really is no easy answer. As you can imagine, typical consulting fees for skin care consultants are vastly different from typical consulting fees for jury consultants.

Typical consulting fees are all about value. How much value do your services offer your client? By doing a little research and bearing value in mind, you will be able to set a rate that is appropriate to your area of expertise and is competitive within the industry.

Consultancy business plan template

Consultancy business plan templates are extremely useful when putting together your own consultancy business plan. However, it’s important to use critical thinking when working off a consultancy business plan template that’s already been created.

Consulting rate

Consulting rate – Are you wondering how to set your rates as a new consultant? It’s extremely important to set an appropriate rate for your consulting services. Why? Because not only does your rate reflect your qualifications and expertise, but it’s also your bread and butter! Use a strategy when setting your consulting rate so that you are confident in your pricing structure. Rates should also take into consideration competitors’ rates, physical location (think urban cities versus small towns) and the exclusivity of your services.

Consultant business plan template

Consultant business plan template – Are you searching for a consultant business plan template because you’re interested in becoming a consultant?

If so, then you’ve come to the right place. Not only does Consultant Journal have excellent consultant business plan template resources, but we also have over 900 valuable articles that explain every aspect of becoming a consultant, from consultant finance to marketing your consultancy.

3 big ways your smart phone can help you make more money

As you know, I love my smart phone. Not only do I love these 7 reasons to use portable media in your business, but I’ve also discovered the 3 big ways your smart phone can help you make more money.

Consultancy – Start your own

Consultancy – Have you always wanted to start your own consultancy? Not sure where to start? The good news is that starting a consultancy can be as easy as choosing a specialization, building your expertise, setting your rates, and finding your first client. In fact, depending on the type of consultant you are to become, there are very few rules governing most consulting industries so the time it takes to go from zero to having your own consultancy is shorter than you think.

Four new products added to the consulting start-up course

I just finished uploading new content to my consulting start-up course, Become a Consultant: How to Make the Leap. You’ll now also find:
- Tips for Getting Started with Managing Your Online Reputation, a key part of jumpstarting your expert status (audio)
- Six Secrets for Managing Your Online Reputation(audio)
- Managing Your Online Reputation, a detailed report, along with a list of resources you can start using now
- The Three Things You *MUST* Do Before You Can Move to Solution-based Fees (audio)…

4 things you never knew about consulting fees

I’ve done a lot of work on consulting fees, including writing Consulting Fees: A Guide for Independent Consultants and helping numerous new consultants set their consulting fees. When discussing consulting fees with clients and new consultants, I’ve noticed common misconceptions about consulting fees.

I’ve compiled these common misconceptions into this article to help set the record straight when it comes to consulting fees.

7 terrible secrets revealed by your email address (and how to fix them)

When it comes to your personal and business brand, your email address may be undoing all your hard work. Over the years, I’ve seen a lot of email addresses – and I’ve had a chance to make observations through the eyes of hiring manager, consultant, client, volunteer and colleague. And I have spotted 7 terrible secrets revealed by email addresses.

Welcome, Entrepreneur Magazine readers

Consultant Journal is featured in Entrepreneur as part of a story on launching a consulting firm. Being featured in Entrepreneur feels like I’ve come full circle in my business.

Consulting business plan template – free outline

Many people write to ask where they can find a consulting business plan template. Well, here’s a free outline of a consulting business plan template.

But it’s just your time!

“Could you spare 20 minutes to talk to me on the phone?”

“I’d be happy to work with you to develop a proposal that will meet your needs.”

“But it’s just 20 minutes. In 20 minutes, you could give me such important strategy that would otherwise take me months to develop. You could really help me….”

How I learned to stop worrying and love the economy

Feel like the economy is hurting your business? The simple truth is that any change in the economy brings along opportunities.

I love my smartphone

A smartphone has given more power, flexibility and freedom to me in my business life. Could it work for you?

Living in the now

In today’s world, it’s pretty easy to get caught up in all the things you want to be doing. Sometimes, just taking a break from the future to focus on right now can be valuable.

Dreyfus model of skill acquisition

The Dreyfus model of skill acquisition is a helpful concept to understand when interested in building your expert status. The Dreyfus model was developed at the University of California during the 1980s, and this model of skill acquisition is still relevant today.

Why build your consulting website using WordPress

Whether you are a just getting started as a consultant or whether you’re a seasoned veteran, chances are you will need a consulting website. Gone are the days where a business card will suffice when it comes to marketing your consulting business. You’re going to need a website.

50 people in line for our teleseminar tonight!

Wow, I must say I’m floored. When we sent out the invitation for Consultant Journal readers to take part in tonight’s free teleseminar, I was hoping that we might get 10 people to register. I’m being really honest here – it’s my first time doing something like this for Consultant Journal and I wasn’t sure how readers would respond. I felt there was a good chance many of you felt “stuck” in your lives, but I had no idea so many of you would be keen to listen in. (By the way, if you aren’t able to make the call, you can still register and listen to the recording later.)

IT contracting rates

IT contracting rates vary from firm to firm and region to region. Nowadays, you may be competing with offshore contractors. But you can still carve out a niche for yourself.

Nearing capacity for teleseminar – sign up now

Just a quick note to say that we’re almost at capacity with seats in this Wednesday’s free teleseminar. As I mentioned, I’ve partnered with Gerrianne Clare of Family Guidance System to offer a FREE teleseminar for Consultant Journal readers.

Business moms – 5 things they won’t tell you

We hear a lot about work at home moms and small business owners who are moms. Mom entrepreneurs are all the rage. But here are five things you won’t hear.

Free teleseminar – filling up fast!

Sometimes, whether it’s in your professional or personal life, you can get stuck. The stress and strain of trying to have it all can really take its toll. By partnering with others to leverage their strengths and experiences, though, you can find ways to have it all – without having to do it all all the time. As I announced in yesterday’s newsletter, I’ve partnered with Gerrianne Clare of Family Guidance System to offer a FREE teleseminar for Consultant Journal readers.

Become an IT consultant

If you’re interested in working as an IT consultant, these handy resources can help you on your path.

Consultant course – 5 great options for study

Taking consultant courses can be an effective way to jumpstart your career as a consultant. However, consultant courses aren’t always easy to find or aren’t necessarily in your area. Here are 5 great consulting course options for study that will help you launch into your next career as a consultant.

Expert consultants – How they got there

Expert consultants – wondering how they got there? Here’s a quick overview of some founders of top consulting firms, where they came from and how they got there.

Tom Peters:

Tom Peters started out with a master’s degree in civil engineering, but he later studied business at Stanford, receiving both an MBA and a PhD. After spending some time in the navy and working at the White House [...]

7 reasons to own a niche

1. Expertise

When you own a niche you are perceived as an expert in that niche. (And you will become an expert in that niche over time, if you aren’t already.) Customers feel more confident when they perceive you as an expert, and it’s easier to stand out in one area.

2. Clear elevator pitch

We’ve all met individuals at networking functions who stammer, “I’m a creative writer, but also do social media. And I love helping businesses with their financial books. And I sell audio files on the internet.” When we hear someone with such a diverse range of interests and skills, it can be difficult to know what type of work to hire this consultant for, so we don’t end up hiring them at all.

Consulting expert manifesto

Are you interested in building your consulting expert status? Behold – the consulting expert manifesto:

1. Teach a course

If you want to fast-track your consulting expert status, arrange to teach a course in your niche. Sound scary? It doesn’t have to be.

Internet Killed the Video Store

Blockbuster has announced it’s closing stores. Here’s a little ditty I wrote in honour of the video store. I suppose I was truly a child of the 80s and I remember watching Video Killed the Radio Star over and over during lunch in my fifth grade class room. (Our teacher would record MTV and bring it in. To keep it educational, we had to write a test at the end. Even now, I can tell you obscure details about videos from that time.) Video Killed the Radio Star was the first video ever played on MTV, by the way.

Social enterprise – four rules for start up

Is a social enterprise in your dreams? In this guest post, Daniel Frank of GiveACar shares some tips for starting a social enterprise.

7 ways to use the iPad 2 in your business

Are you considering whether the iPad 2 is a valuable investment for you and your business? In order to help you make your decision, here are 7 top ways to use the iPad 2 in your business:

Turning around toxic client situations

Turning around toxic client situations is sometimes necessary. Turning around toxic client situations for the better may be your only option, especially if your client isn’t quite toxic enough to be fired completely. Turning around toxic client situations may seem difficult–and sometimes even impossible. But your success depends heavily on your attitude, which you can control.

Upcoming teleclass – survey

We’re planning a one-hour telephone call that you can dial into or listen to on your computer. It’s the first time we’ve done this, so it will be free, except for whatever normal long distance charges might apply. We’re still pulling the details together, of course. But we need your help! We want to know what time works best for you.

Identifying toxic clients

Identifying toxic clients is a valuable skill. Toxic clients are rarely worth the money because they can sap your energy, time and patience. Frequently, it’s possible to identify early warning signs, but we don’t act on them and tend to continue working with the client anyway. But over the long-term most of us wish we’d trusted our initial instincts and avoided working with the toxic client in the first place.

Take our poll

So, are you consulting? Take our new poll and tell us.

Vacationing as a consultant

It’s May. I hit the beach this weekend and it was packed! It was hard to find a place to sit. The warm sand – a rarity in Vancouver at this time of year – felt really good. And it got me thinking about how lucky I am to live in such a beautiful place, with beaches minutes from my home.

My career has taken me on many trips. Over the years, I’ve travelled to many countries, states and provinces. Increasingly, I look for ways to combine business with pleasure. I choose business events and meetings in places I already want to visit, so that I can satisfy my tourism bug at the same time.

Of course, being self employed, I often take work with me when I go on vacation. A good Wifi connection is paramount. But accessories, such as a laptop and smart phone help too. I like to check that Wifi and a good desk are included in the room.

No matter whether it’s for business or pleasure, I bring along a stack of business cards. I’ve made some great connections on trips over the years and I think that, anytime you make real connections with people, there’s a great opportunity to keep in touch.

Oh, and be sure to set up a roaming package for your phone. That little business trip to San Jose in February cost me about $160 in phone call fees. Ouch. I’ll be smarter next time.

What are your consulting vacation trip tips? (Try saying that fast!)

Say no to coffee

How do I find out why the heck someone wants to have coffee with me?

Keys for getting clear about consulting fees

Setting your consulting fees can be a huge stumbling block. If all this is new to you, you may feel your head spin when you start looking at coming up with a fee. If you’re also dealing with a career change, a career break, cultural or gender factors, things get more complicated. Fortunately, you can use clear models and recommendations to help navigate this new path.

6 business reasons to use Twitter

Now, maybe you’re wondering why you should even bother with Twitter. With 140 characters as the limit for a message, what could you possibly gain from this? Well, there are tons of business reasons to bother with Twitter, even if you don’t want to get in the habit of “tweeting” (sending out messages) on your own.

Tax write off

Tax write off time of year again, yes it is! Tax write offs are one of the many things that rule about being a consultant, even if being a consultant is your second job.

Over the years, Consultant Journal has put together a couple of handy tax write off lists, including tax write offs (which covers the basic tax write offs) and more tax write offs (which includes a list of some of the most overlooked tax write offs).

In addition to the tax write off information in the above two lists, when considering tax write offs don’t forget that in some cases you may be able to write off both business use of your car and business use of your home.

And don’t forget those charitable donation tax receipts! In fact, you can even donate a car for an additional tax write off.

Tax write offs are a perk and they are worth keeping track of and claiming. However, don’t go nuts as a new consultant and buy too much just for the tax write offs. Like everything else in life, balance is key.

How do you keep track of your tax write offs and receipts?

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Discover Your Inner Consultant – for Moms

Moms – have you toyed with the idea of consulting as your next career change? Maybe you like the idea of working for yourself, having flex time, building your career, working around your family’s schedules (and sick days!), or earning a solid income. Join veteran consultant Andrea Coutu of Consultant Journal and Kerry Sauriol of Crunchy Carpets and SAHMedia for this hands-on workshop that examines consulting opportunities based on your unique background, best practices for getting started, quick start tips, creative childcare solutions and more. Network with other moms over a light vegetarian lunch and coffee.

Consultant Journal on Twitter @consultantj

Many of you have followed me on Twitter as @andrea_coutu. I wanted to let you know that I’ve now set up a separate account for Consultant Journal: @consultantj. You’re welcome to follow me at both accounts, of course, but I’ll be tweeting more specifically about consulting and business management under the Consultant Journal account.

Do you Tweet? Come say hello!

12 tips for managing your online reputation

Managing your online reputation is increasingly important. You may have have heard that dates, neighbours, clients and prospective employers may be looking you up online. But what exactly can you do about it? Maybe you’ve heard that once something is online, it’s there forever. Well, while it’s difficult to remove stuff from the Internet, you can take steps to manage your online reputation.

Reader Feedback Part Deux

Okay, the other day, I asked you about ad mock-ups. You spoke. I’ve gone back to that post and updated the images. What do you think now?

Related: 

Readers – your feedback wanted!

[]I’m thinking of updating the ads you see over here to the right. You know, the ones for Consulting Fees, Discover Your Inner Consultant, and Become a Consultant. Now, traditionally, I’d just go ahead and put up new ads. But 50,000 people visited this site last month and I’d honestly like to know what you think. You’re the ones who look at this site and what you think matters to me.

So, as a sneak preview, here are the ads.

Consulting Fees Guide ad

 

Discover Your Inner Consultant

 

Become a Consultant Course

Do they speak to you? Do you prefer what I have now?

Update:

A few of you commented, emailed or DMd on Twitter to tell me you like the first two, but not the last. How does this one work for you?

 

 

How to become a health sciences consultant

Health science consulting offers a variety of work opportunities. Find out more about this rewarding field.

Recommendations for online data storage?

Ugh. I just had an excrutiating experience with trying to find online data storage.

Consulting invoice format

Consulting invoice formats can affect the amount of time you spend invoicing every month. If you’re a new independent consultant who’s just getting started, it won’t be long before you realize that consultants take on many roles during the course of a month–everything from consultant, marketer, IT person, receptionist, and accountant! So it’s important to simplify and streamline as many administrative tasks as possible.

Getting paid is a crucial part of consulting, and it can be easy to push accounting-related tasks to the back-burner when you are juggling a number of consulting projects. However, choosing a consulting invoice format that is simple to replicate and quick to pull together can streamline your procedures.

If you are searching for a basic consulting invoice format, check out this basic example, which you can replicate on your own computer. In brief, in your consulting invoice format you will want to include the date, your contact info, your client’s contact info, a basic description of the services rendered, cost breakdowns (including taxes) and your terms of payment. Again, check out this consulting invoice format example for further details.

If your consulting invoice format is simple and you still find yourself behind on invoicing, consider upgrading to accounting software or sending your accounting needs to an accountant.

Depending on where you are in your consulting business, remember that it can sometimes be more cost effective to bring in another expert than to struggle with a part of your consulting business that doesn’t come naturally and takes up a lot of time.

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Consultant course – start your own business

Whether you’ve had a consulting business for a while or you’re still testing the waters, it can help to have guidance and support along the way. That’s why Consultant Journal offers a consultant course designed to help people build consulting businesses. In our consultant course, Become a Consultant: How to Make the Leap, you can learn about everything from marketing to finances.

While most entrepreneurship programs focus on general business start-up advice, consulting offers its own set of unique circumstances. Having an inside view in a dedicated consulting course can help you through consulting start-up questions.

When I started my own business more than 14 years ago, I enrolled in an entrepreneurship program. It was a wonderful, supportive environment and I’m now good friends with one of the program’s facilitators. Yet, while I studied in the program, I yearned for help with my unique business — consulting. Starting a consulting business differs from other kinds of businesses in that, in the early days anyway, you’re selling yourself. And, in most cases, people start consulting businesses partly out of lifestyle desires – perhaps an interest in working from home, working flex hours or maybe even moving to a new part of the world. This makes consulting very different from selling widgets, running a restaurant or many other businesses.

Moreover, as you start up a consulting business, it can help to connect with other consultants. Given the project- and referral-based nature of consulting, you’ll probably be collaborating with other people for years to come. So taking a course with other consultants can help you enhance your professional network.

Have you taken any consultant courses and consultant training along the way?

Print, PDF and email this blog

I’m happy to say that you can now print, PDF or email blog posts from Consultant Journal. You’ll see the print & PDF widget at the bottom of posts. It also allows you to email yourself a copy of any post.

By the way, have you tried "Share This"? That’s the widget just below "Print Friendly". You can share any blog post with friends and social media contacts using Facebook, email, Twitter – you name it.

See below! Enjoy!

Smart social butterfly turned into software

I was at O’Reilly Strata last month, where I met Claude Theoret. Claude’s story is fascinating. He’s an astrophysicist turned consultant turned social media software pioneer. And he’s found a way to take his social and analytic skills and turned them into software.

How to get a consulting job

Wondering how to get a consulting job? Many people who wonder how to get a consulting job start by contacting existing consulting firms and pitching their own services to existing consulting businesses. And that can work for some. But if you’re thinking about how to get a consulting job, why not consider starting your own consulting business?

If you’re wondering how to get a consulting job, consider starting your own consulting business right now. Here are five reasons why the answer to how to get a consulting job should be to start your own consulting business!

1. Starting a consulting business is inexpensive

In many cases, all you need is a home office and a computer to start your own consulting business. Can’t get much cheaper than that! 

2. Choose your own value system

You’ll get to choose your own niche, your own specialty and your own value system. No need to make yourself fit into someone else’s terms when it comes to how to get a consulting job.

3. Be your own boss

Haven’t you always wanted to set your own schedule and the freedom to do what you want, when you want? In addition to having the independence to make your own decisions, there will be no one breathing down your neck. Total freedom!

4. Watch your business grow – on your terms

You can control the growth of your own consulting business. Want to stay small and work from home–focusing on work/life balance? No problem. Or want to set your sights high and start your own firm and watch it take off? No problem! It’s all up to you.

5. Own your achievement and recognition

The satisfaction of knowing that you created your own business on your own is priceless.

Do you have an idea regarding what type of consulting business you can start but aren’t sure where to begin? Join us for the course Become a Consultant: How To Make the Leap.

Related posts:

 

Do you have a product you want us to review?

If you have a product or service you’d like Consultant Journal to check out, just let us know. But be prepared for our honest opinion – we want to do a service to the readers here at Consultant Journal and we can only do that by telling it like it is. We tend not to be complete Debbie Downers, though, and we like to draw attention to the good points, too. You may also be interested in our consultant directory and list, if you think your services/goods are a fit for our readers.

Rates for independent consultants

Rates for independent consultants can be one of the most important elements to understand as a consultant. How do you set rates for independent consultants? What are other consultants in your field charging? How can you justify a high rate? Should you negotiate your rate? How much is too much–or too little? What strategy should you use to calculate rates for independent consultants?

Questions abound when it comes to setting rates for independent consultants. And setting appropriate independent consultant rates can make the difference between struggle and success as a consultant.

There are numerous types of consultants, and the procedure for setting rates for independent consultants can differ depending on the type of service you provide. For example, a fitness consultant and a jury consultant may use different strategies to calculate rates–even though they may both be independent consultants.

Relatedly, different target markets can bear different consulting rate scales. For example, an IT consultant who targets new small businesses may have drastically different independent consultant rates than an IT consultant who targets Fortune 100 companies.

There are numerous strategies for setting rates for independent consultants, including:

  • multiplying your hourly wage
  • using a per diem rate
  • charging by project or performance
  • using real life data
  • using competitors’ rates

However, all of the above strategies for setting rates for independent consultants miss the most important piece: charging based on the perceived value that you provide.

Want to know more about how to set your own independent consultant rates using this strategy? Get practical tips and 124 pages on making money as a consultant! Check out my Consulting Fees: A Guide for Independent Consultants.

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Expert Consultant’s Manifesto

In becoming an expert consultant, you make a bold statement about your principles. With that in mind, here is the Expert Consultant’s Manifesto.

Types of consultants

Types of consultants – Think there are only just a few types of consultants? Well, think again! There are hundreds of types of consultants. Here at Consultant Journal, we have profiled numerous consulting niches, and we’ve only just scratched the surface!

Types of consultants can be broadly arranged into consulting sub-categories. Of course, some types of consultants can be grouped into more than one category, so be sure to check out all the categories if you’re looking at this list of types of consultants for inspiration on your journey to become a consultant.

1. Personal consultants

Personal consultants offer personal services to individuals, such as weight loss and fitness consultants, home staging consultants, clutter consultants, skin care consultants and wedding consultants.

Personal consulting tends to be easier to get into because there are fewer certification requirements.

2. Technical consultants

Technical consultants perform technical services for business. Quite often, these types of consultants are hired to execute a specific project or deliverable, rather than provide advice.

There are a wide range of technical consultants and they can range from graphic designers, IT consultants, grant writing consultants, online researchers, copywriting consultants, and more.

3. Business consultants

Business consultants provide advice to other businesses, from small businesses to Fortune 500 companies. There are numerous types of consultants in this sub-category, especially because many business require these services but do not require them enough to warrant hiring a full-time staff member. Thus, businesses turn to consultants to fill this need.

There are numerous types of business consultants, and some examples include marketing consultants, sales consultants, human resources consultants, restaurant consultants, and business development consultants.

4. Executive consultants

Executive consultants are a smaller group of consultants, and they tend to charge the highest fees. Some examples of executive consultants are legal consultants, labor relations consultants, conflict resolution consultants, jury consultants, medical consultants, and other highly skilled and highly trained consultants.

For even more ideas for consulting ideas, check out this list of types of consultants.

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Who you calling an expert?

Who you calling an expert? Becoming a small business or independent consultant may seem out of reach to some of you because you just don’t think you’re enough of an expert to be a consultant.

Let me tell you right now that becoming an expert is not as complicated as it sounds. When you’re a consultant, you are offering your clients something of value–your expertise. But expertise doesn’t have to mean that you are the world’s foremost expert in your field. No, expertise just means that you have more insights than your client does on your given area of expertise.

For example, you may be a home staging consultant. Now, you may never be called on to provide staging services for Oprah, but you do know something about home staging, right? You’re passionate about home staging, you’re up on all the trends and you’ve even taking courses on the subject. And if your client is a color-blind bachelor who doesn’t know the difference between orange shag and a neutral berber carpet, then you are by all means a total expert in this situation. So don’t feel intimidated by the fact that you may not be a home staging guru to the stars. Rest assured that you can be an expert and provide value to your clients.

In order to build your confidence and really feel like an expert, there are numerous things you can do to jumpstart your expert status, from teaching a course, having an article published in an industry magazine, or providing services to a high-profile client in your community.

Whether you’re dreaming of consulting or are already running a business of your own, you probably know that gaining expert status can help you with building client relationships. That’s why we offer Six Tips for Jumpstarting Your Expert Status when you sign up for our newsletter.

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Consultant training

Consultant training can be an excellent option if you’re interested in becoming a consultant but aren’t sure where to begin. When you register to take consultant training there are numerous benefits–both personal and professional: 

1. Meet like-minded people in consultant training

Never under-estimate the power of connecting with like-minded people. Meeting like-minded people in consultant training can have two main benefits:

Building your support network: Getting to know other people who have chosen a similar life path is key. You can support one another and expand your network at the same time.

Potential clients and referrals: People love making recommendations and helping out new consultants. Other consultants can be a great source of new work, be it because they don’t offer the services that you do or if they have too much work and want to offload it to another qualified consultant.

2. Get on the fast-track to success in consultant training

Enrolling in consultant training can fast-track you to success. Avoid common mistakes, learn how to set your rates and much more. Consultant training gives you the inside scoop on how best to become a consultant.

3. Identify mentors during consultant training

Most consultants who offer consultant training also offer a coaching component that can be invaluable. In addition, other consultants can serve as mentors depending on their experience level and their willingness to share expertise. 

Are you interested in registering for consultant training? Be sure to subscribe for the Consultant Journal newsletter to find out more about consultant training.

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Following your heart

Following your heart is where you want to be. When you follow your heart and your passions your chances of creating a successful business increase.

Just like with anything in life, things become easier when you are following your heart. If your work aligns with your values and you genuinely enjoy what you do your passion shows.

But following your heart doesn’t mean blindly going forward because you’ve got a passion. No, following your heart means aligning your skills with your passions. This concept simply means looking at what you’re great at and what you’re interested in. Fuse these two results together and you’ve got the makings of a career that could bring you more flexibility and self-satisfaction than you could hope for. It isn’t always easy, but the rewards are there when you follow your heart.

Are you looking for support and guidance on following your heart to a new career as an independent consultant? Consider the following two programs that are designed to help you follow your heart to the consulting career of your dreams:

Discover Your Inner Consultant: A Guide for Discovering What Consulting Business You Could Start – You’ve started thinking about becoming a consultant. Maybe you’ve mulled over a few ideas or maybe you’re stumped. But how do you choose a consulting business? How do you figure out what business would work best for you?

Discover Your Inner Entrepreneur For Moms: A Guide for Discovering What Business You Could Start – Are you looking at combining kids and career? Maybe you’ve heard about moms who have their own businesses and you’re wondering if it would work for you. But how do you know if starting a business would work for you? How do you make sense of all the opportunities out there and find one that works for you?

These two programs will help you drill down your passions and skills. Follow your heart to a new career today. You deserve to enjoy the work that you do!

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7 reasons to use portable media in your business

Aah, smart phones, iPhones, BlackBerries and Droids. Are you part of the portable media club? If not, here are 7 reasons to use portable media in your business:

1. Stay connected

Use portable media in your business and stay connected 24/7. Check in on your business no matter where you are and never miss important last minute emails.

2. Maximize your efficiency

Use portable media in your business and avoid wasting time waiting for meetings, flights or any other moment where you find yourself waiting with little to do. When you’ve got downtime–even a minute or two–you can plow through email, check your calendar, or check in on your business online. One of the main differences between portable media and traditional laptops is that with portable media you don’t have to wait for the long boot-up time that traditional laptops need. One touch on your smartphone wakes up your iPhone, BlackBerry or Droid in seconds.

3. Be more active on social media

Use portable media in your business to keep up with social media accounts, like Twitter and Facebook. Posting to social media is quick and easy on portable media, especially if you take advantage of social media apps. Checking in on social media is a great option when you’ve got a minute or two between appointments.

4. Be on call for your clients

Use portable media in your business and be accessible to your clients whenever you want to be accessible. Respond to emergency emails from wherever you are. But be careful. Being an independent consultant doesn’t necessarily mean being accessible 24/7. Be sure to set boundaries and give yourself "me" time during which it’s okay to let business emails sit unanswered. Work/life balance is key, after all.

5. Access your data from anywhere

Use portable media in your business and rest assured that you’ll never be without your important data. Email addresses, phone numbers, reminders and calendar appointments are all at your fingertips wherever you are.

6. Consolidate your information

Use portable media in your business and sync your smartphone to your home computer.  Automatic syncing of your information means that you’ll spend less time  transferring files back and forth and more time generating business.

7. Personal perks

Use portable media in your business and reap personal benefits, too. Out on the road for an evening? Want to make dinner reservations? Want to see what movies are playing at your local theatre? Check in on your portable media unit from anywhere.

Are you interested in building your expert-status? Whether you’re dreaming of consulting or already running a business of your own, you probably know that gaining expert status can help you with building client relationships. That’s why we offer Six Tips for Jumpstarting Your Expert Status when you sign up for our newsletter.

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Big data – the super hero consulting opportunity

Big data offers a world of opportunity for consultants. Despite the boring moniker, big data can help turn you into a superhero – imagine preventing diseases, deterring terrorism and fighting crime. Well, with big data, you can do that. Big data refers to data sets so huge that they defy management by tools like databases. It’s hard to capture, store, search, analyze, visualize, share and interpret big data. Figure out how to help people do any of those tasks and you’re in business.

Use 3D charts and graphs at your own risk

3D bar charts and graphs may mess with the information you’re trying to convey. Find out what graphical data representation expert Naomi Robbins says about the risks.

5 ways to use video cameras in your business

Video cameras are becoming more common as quality increases and prices decrease. Here are 5 ways to use video cameras in your business:

1. Tutorials

Use video cameras in your business to create video tutorials on basic concepts related to your business. Clients will appreciate these tutorials, and on-camera tutorials can save you time and money because you may be able to provide video tutorials instead of in-person training.

2. Social media / YouTube

Use video cameras in your business to promote your products or services via social media. Create simple how-to videos that provide valuable information and position you or your organization as an expert at the same time. Cross-promote these videos at Youtube, Viddler and on other video sharing sites to increase your reach. You can even pull the audio from your videos and package the audio as free podcasts to be distributed on iTunes and elsewhere online.

3. Insurance

Use video cameras in your business to document your workspace and to provide evidence in the event of an emergency like a flood, fire, or theft.

4. Client testimonials

Use video cameras in your business to capture client testimonials. There is nothing more powerful than the endorsement of satisfied clients. When done professionally, on-camera client testimonials can have powerful impact on your business. If your camera skills aren’t up to par, consider outsourcing this project to video professionals.

5. Interviews for information gathering

Use video cameras in your business to aid in your requirements-gathering process. Not all clients will be receptive to being on film, but others will find being on camera an added bonus. And for you as a consultant, you’ll be able to refer back to important meetings and decisions for clarification.

Are you interested in more tips on how to build your expert-status? Whether you’re dreaming of consulting or already running a business of your own, you probably know that gaining expert status can help you with building client relationships. That’s why we offer Six Tips for Jumpstarting Your Expert Status when you sign up for our newsletter.

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10 ways to use digital cameras in your business

10 ways to use digital cameras in your business:

1. Document for insurance purposes

Use digital cameras in your business to document your workspace for insurance purposes. Be sure to take photographs of your office detailing your business equipment and store the photographs in a safe place. These photographs could prove invaluable if a fire, flood or other disruption occurs at your home office or workplace.

2. Enhance your blog posts and articles

Use digital cameras in your business to enhance your business blog. Leave the photographs on your main website up to the professional photogaphers, but if you have a business blog use your digital camera to take relevant photos to enhance your blog posts. A picture is worth a thousand words!

3. Add benefit to client meetings

Use digital cameras in your business to enhance your client meetings. As a graphic design consultant, a client may indicate a color that he prefers or a logo idea based on an album cover or keychain. Having a digital camera at the ready will help you to capture the client’s desires digitally right then and there.

4. Document your work flow and efficiencies 

Use digital cameras in your business to document your work flow. Snap photos of your workspace as you work on a project. Notice piles of paper everywhere? A pattern of disorganization? Use the photographs to identify problems in your organization and make changes to improve your organization skills and efficiency.

5. Take photos of milestones

Use digital cameras in your business to document milestones. Get your first large cheque in the mail? Snap a photo. Land a superstar client? Take a picture of yourself with your big silly grin right after you hang up the phone. These photos make for great reminders and will help motivate you if you’re having a bad day.

6. Take photos of important events and functions

Use digital cameras in your business to capture notable events of interest to your clients. Did you sponsor a banner or table at a networking event? Did you win an award at a business networking award dinner? Taking photos of these notable events and posting them to your Facebook page, blog, email newsletter, website or other social media outlet will increase your brand power and status as an expert in your field.

7. Enhance PowerPoint presentations

Use digital cameras in your business to enhance your PowerPoint presentations. Sometimes stock photography is not enough. However, ensure that the quality of your photos is up to par. If your photographs are blurry or low-quality, stick with stock photography instead.

8. Take mandatory photos

Use digital cameras in your business because it may be a necessity. Taking your own photos may be necessary depending on your niche. For example, an environmental consultant may need to take photos of the terrain and adjacent areas to include in an environmental assessment or report.

9. Use as a scanner in a pinch

Use digital cameras in your business if your scanner goes on the fritz. In a pinch, a digital camera can serve as a scanner if needs be. The quality isn’t great, but taking a photograph of a document and emailing to a client is better than having to retype it manually.

10. Create promotional or informational videos using still photography

Use digital cameras in your business to create YouTube or other videos. Did you know that you can create effective videos by linking still photographs together? It’s very easy and can result in effective videos that combine photographs and overlaid text.

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Making a great first impression

Making a great first impression can make a big difference to your career. This guest post by Tim Grayling gives you 10 tips for making sure that first impression counts in your favour.

Who cares what they say anyway?

Are you paralyzed by what other people think? Are you afraid of being seen as a failure? Are you unable to live your dreams because of fear of criticism or because you’re afraid of what other people might think? We might not like to admit it, but we’ve all got fears.

Fear is one of the primary reasons that people keep on doing what they’ve always done. Change is difficult. Change is scary. But change is also what is going to move you into new areas of your life. Without change, you won’t climb higher than you already are.

Don’t wait for opportunities to fall into your lap, because they rarely do. Rather, you’ve got to make your own opportunities and design your own future – regardless of what other people think.

If you’ve got a desire to give power to the entrepreneur within but are worried about what other people will think, stop worrying right now. Who cares what "they’ say? Whether you’re concerned about what your parents, coworkers or friends might think, the most important opinion that you should be giving credence to is your own.

Of course, we all want support from those closest to us, like our spouses. But if there are relatively insignificant people in your life who don’t support your efforts, ask yourself how much value you should put on the opinions of people who may not have your best interest in mind.

Seek support from those closest to you and gain confidence in your own goals by arming yourself with valid information and by connecting to others who are already achieving success in similar areas.

And after all, who cares what "they" say anyway? At the end of the day it’s what you really think about your own life that matters.

Are you looking for support and guidance on your journey to a new career? In addition to the over 900 free articles here on Consultant Journal, we offer products to help you when ready to seriously take the leap.

Course and mentorship package:

Become a Consultant: How to Make the Leap - With audio and written lessons, 25 exercises, discussion forums and more, you’ll have mentorship in your journey to consulting.

Guidebooks for independent learners:

Discover Your Inner Consultant: A Guide for Discovering What Consulting Business You Could Start – You’ve started thinking about becoming a consultant. Maybe you’ve mulled over a few ideas or maybe you’re stumped. But how do you choose a consulting business? How do you figure out what business would work best for you?

Discover Your Inner Entrepreneur For Moms: A Guide for Discovering What Business You Could Start – Are you looking at combining kids and career? Maybe you’ve heard about moms who have their own businesses and you’re wondering if it would work for you. But how do you know if starting a business would work for you? How do you make sense of all the opportunities out there and find one that works for you?

Consulting Fees: A Guide for Independent Consultants – Learn a system for setting consulting fees and maximize your earning potential. Set your rate and ask for it with confidence.

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Welcome, Buffalo Law Journal readers

Consultant Journal was recently featured in the Buffalo Law Journal. If this is your first time here, welcome!

Some of the most popular pages on this site are listed over here to your right.

And you can use the handy search tool to dig up specific topics.

If you read the Buffalo Law Journal piece, you may be interested in this article on surviving feast or famine consulting cycles.

By the way, if you sign up for our newsletter (3100 strong), you’ll get Six Tips for Jumpstarting Your Expert Status.

Cheers!

Giving power to the entrepreneur within

Giving power to the entrepreneur within is something that many of us think about but few of us take action on. Whether it’s financial responsibilities, healthcare, our children, or one of the many other responsibilities that we face, sometimes the entrepreneur within gets snuffed out.

There are many benefits to having a regular 9 to 5 job, which can make it difficult to leave the safe-zone of being employed by someone else. However, there are also benefits to unleashing your inner entrepreneur, including making a killer hourly rate and having the flexibility to live life on your own schedule.

That being said, don’t give power to your entrepreneur within without taking the necessary steps to minimize your risk. Some of these steps may include securing a business line of credit before you leave your regular job, putting a substantial amount of savings aside to act as your buffer zone, doing plenty of research on your industry and connecting with successful people who are living the life that you want. Perhaps even consider seeking out a mentor who can guide you along your journey to giving power to the entrepreneur within.

Whether you’re interested in becoming a small business consultant, becoming an independent consultant, or starting a new career that is uniquely yours, take action today by getting serious about planning for your future. Where do you want to be in five years and how are you going to get there?

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Tell me about your business

Have you started a consulting business? Even an itty bitty one? Have you grown the one you had? Tell me your story and how Consultant Journal has helped and I’ll consider you for a blog post, complete with a link to your website. One of the things I love about this blog is the opportunity to hear from people just like you. So many of you send emails. If you’d like to share your story with the wider world (and promote your business), contact me.

Do a lot of moms start businesses?

Earlier this week, I went to a business meeting. As part of my introduction, I mentioned that I have two businesses. At break time, a woman asked me about my work and asked if it was a “cottage business” so I could be home with my kids. I was stunned. I’ve had my business for 14 years, I have an MBA, and, yes, I have kids. I cannot even imagine anyone asking a man if his business was a “cottage business”.

Help Consultant Journal provide better content in 2011

Every year at this time, I review my business plans for the coming year. When I started Consultant Journal, it was just a personal blog – a way to describe my life as a consultant and perhaps help other people out. Over the years, I’ve had the privilege of helping other people start and run consulting businesses and I’ve also connected with many wonderful people who’ve helped me.

Consultant Journal is important to me and it’s important that I help meet your needs as readers and community members. With that in mind, I’m embarking on my first survey.

You can find the Consultant Journal survey at http://www.surveymonkey.com/s/GF5JG9R

The point of the survey is to help me deliver the content and materials that best fit with the needs of readers. If you have any suggestions now or at any time, I welcome your feedback.

Best wishes for a happy, prosperous 2011.

Andrea

5 ways to deal with being scared

Having strategies to deal with being scared is crucial, because in life we experience a lot of fears. Be it fear of public speaking, fear about our businesses, or fear about starting over in a new career, you’ve got to have a strategy for dealing with feeling frightened. Take a look at the below ways to deal with being scared so that the next time you start to feel paralyzed by fear you’ve got a plan for moving yourself through fear into action.

5 ways to deal with being scared – Getting specific

1. Face your fear head on

Fear is almost always about the unknown. Typically, we experience generalized fear about a certain topic, for example, you might experience fear related to possible failure if you decide to become a small business consultant. But don’t get overwhelmed by the first stage of general fear. Force yourself to move deeper into your fear and ask yourself, what is it that you are really afraid of? Get specific. Write your specific fears down, such as:

  • I am afraid I won’t make enough money as a small business consultant
  • I am afraid I will be exposed as not having enough knowledge to call myself an expert
  • I am afraid that no one will want to hire me
  • I am afraid that I will fail and be embarrassed in front of my friends and family

2. Outline the worst case scenarios

Next, take each of your fears and address them. What would the consequences be if your worst fears came true? Write the worst case scenario consequences down for each of your fears. For example:

  • I am afraid I won’t make enough money as a small business consultant (Consequence: I will lose my home, my car and my lifestyle)
  • I am afraid I will be exposed as not having enough knowledge to call myself an expert (Consequence: I will feel embarrassed and ashamed in front of a colleague or a client)
  • I am afraid that no one will want to hire me (Consequence: I will feel embarrassed and I won’t have any clients, which means I won’t be making any money)
  • I am afraid that I will fail and be embarrassed in front of my friends and family (Consequence: my family and friends will feel sorry for me and I may lose some esteem in their eyes)

3. Own the worst-case consequences

Part of moving through your fear and getting out on the other side is to know that you can handle the worst case scenarios of all your fears. Take each "consequence" above and picture it happening. What would you do if the worst case consequence happened? How would you handle the worst case consequence? How would your life be impacted?

For the majority of our fears, the worst case scenario is usually not even that bad in the first place. Quite often, worst case scenarios simply involve feeling embarrassed. Generally, once we "own" the "worst" consequences we realize that the consequences are not as serious as we were making them out to be.

Further, 95% of our fears never even come true!

4. Create preventive solutions

Now that you’ve "owned" the worst possible results and faced the realities of your fear, you can do your best to prevent the negative consequences from occurring, where possible.

5. Set up your support system

Lastly, don’t ever think that you can go it alone. No matter how strong or intelligent we are, we are always in need of support. Friends, families, mentors and even neighbors are important pillars that will help you when the going gets rough.

Remember, it’s okay to be scared. In fact, fear can be a good thing. Fear can mean that you’re pushing yourself to try something new and that you’re out of your comfort zone. Don’t let fear paralyze you or keep you from achieving your goals. Use these 5 ways to deal with being scared and tackle your fears today.

Related posts:

How I overcame fear of public speaking

What are your biggest fears about your business?

Do you need to like public speaking to sell?

7 reasons to pay attention when something doesn’t fit

 

5 ways to help define success for yourself

If you’re already achieving success, it can be easy to sit back and keep on doing what you’ve always done. But don’t get complacent. Challenge yourself and your business to implement these 5 ways to help define success for yourself.

1. Go after more desirable clients

Don’t just wait for clients to come to you. Consider who you’d like to work with and make it your mission to make that person your client. You’ll be amazed at how your business can change when you start selecting who you’d like to work with — rather than simply accepting the clients who find you.

2. Teach a course

Are you passionate about your work? Would you like to spread that passion with young minds or likeminded entrepreneurs? Consider teaching a course, offering a workshop or making a presentation to your local business networking organization. You’ll be challenging yourself, sharing knowledge, marketing yourself and building your expert status all at the same time!

3. Diversify your income streams

Are you a consultant? To rev up your business, why not try something new and diversify your income streams? Don’t give up your bread and butter, but why not consider creating passive income streams for yourself?

4. Become a mentor

Remember what it was like when you were just starting out in entrepreneurship? Couldn’t you have used a guiding hand and someone to talk to who has been through it all? Consider becoming a mentor. It’s satisfying and rewarding at the same time.

5. Success isn’t always about business

Success in business can mean running a company that allows you to stay home with your children or take extended vacations. Success can mean better work/life balance or heading up a consultancy that actually makes the world a better place.

Success is whatever you want it to be.

No matter where you are in your career, try to incorporate these 5 ways to help define success for yourself into your daily and weekly routines. Don’t get complacent or cave in to fear. Take your life to the next level!

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Holiday card alternatives

Every year, I send my clients, vendors and business partners holiday cards. It’s a great way to say "thank you". In recent years, I’ve shifted to New Year’s cards, when people are back in the office and a little more ready to actually spend a moment or two on reading the card. Plus it avoids offending anyone who doesn’t celebrate holidays in December — just about everyone is okay with New Year’s.

As a green-thinking, home-based business owner who strives to reduce waste, I’ve been wondering if I should give up holiday cards and move to an alternative. A few businesses I know send out electronic cards — but they’re ad agencies and graphic designers, so you can imagine just how fabulous those are. I’ve also thought about donating what I would have spent on cards.

However, I just started a donation team at Kiva. Kiva allows people to make microloans – really tiny loans — to people in other parts of the world. You can help someone buy inventory for their business, buy a motorcycle to use as a taxi, buy a stove, expand their house, go to school — there are tons of options. See http://www.kiva.org/team/consultant_journal. If you’d like to join the team, please do so! It’s $25 to get started and the wonderful thing about making microloans is that, when you’re paid back, you can donate the money again (or pocket it, if you need to!). I’ve been making loans for a few years now and I’ve helped families throughout the world. I love making Kiva loans and encourage you to consider it, whether you’re sending out holiday cards or not.

Still interested in holiday cards? See:

5 reasons to listen to your inner voice

Your inner voice lets you know when something isn’t right – and it makes sense to pay attention.

7 reasons to pay attention when something doesn’t fit

Whether it’s your job, your family life, or another element in your life that isn’t working out, there are always signs–if you pay attention. But the question is, what are you going to do about the signs that are telling you that something in your life isn’t working?

Here are 7 reasons to pay attention when something doesn’t fit:

1. Your life – your future

There comes a time when we have to take responsibility for our lives and our futures. This is your life! Design it how you want it to be. Don’t let "how you’ve always done things" dictate how you’re going to do things from now on.

2. There is a better way

A job doesn’t have to feel like a job. Sure, there will always be hard work and it isn’t always easy, but there is a better way.

You can start a business that is inline with your values and your needs. Flexible work schedules, more personal satisfaction, and better compensation are all possible.

Stop and think about it for a minute. What would be on your bucket list? Could you become an independent consultant?

3. The sooner you start, the sooner you’ll be on the road to success

Businesses grow over time. If you nurture your business now, you’ll be planting seeds that will continue to grow over time.

4. Your family deserves the best you

When you’re happy, the people around you know it. Don’t your spouse, your friends, your children and your family deserve the best you? 

(Not to mention the fact that you deserve to be as happy as you can be!)

5. Trust your intuition

Our minds and bodies are incredibly in tune with our emotions. When you feel that something doesn’t fit, odds are that it doesn’t fit.

Listen to those feelings and take action on them. But don’t do something crazy. Take action now — today — by setting goals and getting serious about the changes you want to make in your life.

6. Value yourself

Are you in a position that doesn’t reflect what you’re capable of? Design your own career and achieve everything that you know you can do.

7. It’s never too late

It’s never too late to try something new. Repeat after me: it’s never too late to try something new!

A wise thinker once said, "The best day to plant a tree was twenty years ago. The second best day is today."

Are these 7 reasons to pay attention when something doesn’t fit striking any chords with you? Are you ready to take the leap into a new field?

Want help in making the transition to consulting? Enroll in the official Consultant Journal course — Become a Consultant: How to Make the Leap. With audio and written lessons, 25 exercises, discussion forums and more, you’ll have mentorship in your journey to consulting.

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How to succeed as a financial consultant

” How to succeed as a financial consultant” is a guest post from Neil R. Williams. He’s a financial consultant by profession and a writer in the finance niche. He consults people on personal finance issues such as on debt problems, credit repair, debt settlement and so. He has articles posted in many financial blogs or sites. The following article is his opinion.

Shop online and support Consultant Journal

I started Consultant Journal several years ago with the aim of helping people understand how to start, run and grow consulting businesses. Over the years it has grown. I’d love to bring more content, more tools and more community to this site.

If you’re doing holiday shopping anyway, you can click through our Amazon link and Consultant Journal will receive a small commission. It doesn’t matter what you buy: holiday cards, books, gift cards, clothes, toys, anything really!

Click the banner here to go to Amazon:

 

What is business? 1948 view

What is business? Well, here’s a 1948 instructional video to tell you all about it.

 

I wrote a post, What is business?, on this subject last year. But there’s just something kinda kitschy and fun about this 1948 educational video…where we see "Mother" and Joan waving to "Father" as he sets off in the car to go to work, seeing as business creates the livelihood for most of the working population. I suppose "Mother" just sits around on her chair and the apron’s just a decoration and the kids take care of themselves, of course. And Mother most certainly wasn’t running off to grab her Tupperware or Avon consultant kits or even bake up some apple pie once the kids were at school. But I digress!

 

My business lets me prioritize my values

People often hear that I have a business and an MBA and assume I have this meat grinder mindset, where it’s all business, all about money and everything’s very unemotional. But that’s till they get to know me. Anybody who knows me knows that my business really reflects my values. And that, because I have a business, I can drop everything to focus on my values when I need to do so.

How to become a business owner

 How to become a business owner – wondering how?

The first step to discovering how to be a business owner is deciding that becoming a business owner is right for you. The way to decide whether owning a business is something you should pursue is to invest the time and energy in understanding what it takes to become a business owner.

Thankfully, research regarding how to become a business owner doesn’t have to be passive or boring. In fact, researching can be as easy as considering what type of business you’d like to own and then immersing yourself in that business: by speaking to those already in the business, reading about the industry or simply launching your own business as a side-job.

That’s right, if you’re wondering how to become a business owner one of the easiest and most valuable things you can do is to start your own business as a second job. In fact, starting a business doesn’t have to be expensive.  When you run a business as a side-job, you’re gaining valuable knowledge and first-hand experience in what it takes to become a business owner without having to give up the stability, benefits and other perks of your current day job. Once your business is up and running, you can take the leap to running your business full-time.

Still wondering how to become a business owner and run your own business? Consider consulting. Why? Because consulting is one of the quickest and simplest businesses to start, consulting offers flexible hours and it’s lucrative. Want to learn more about the type of consulting business you can start that takes advantage of your skills and competencies? Check out the Consultant Journal store for insider tips on how to jumpstart your consulting career.

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Be the Greatest Thing Since Sliced Bread

Positioning yourself as an expert can give your career and your business a boost. After all, when you’re a trusted authority, people are more likely to seek you out and to refer you to others. Whether you’re in business or simply a professional career, figuring out just how to build your expert status can give you an edge.

Me on CBC discussing Toyota Highlander ad series

Here’s the audio for my interview on CBC yesterday. As mentioned earlier this week, I was on the air discussing the Toyota Highlander ad series.

Looking for a career change

Looking for a career change? Stop scanning the classified ads and start considering whether you’ve looked in all the right places for your career change. Have you considered creating your own career? Have you considered becoming a consultant? When looking for a career change, many skilled employees don’t stop to consider whether consulting could be the lucrative, exciting career they’ve been looking for.

If you’re looking for a career change now is  the perfect time to start thinking out of the box. What do you really want out of your career? What do you value? Perhaps working full-time outside the home works for you and your value system. But for many people, working as a consultant satisfies many unfulfilled opportunities, such as work/life balance.

When looking for a career change, it’s important to understand what you like about your current position and what you would change about your current career. If you’re looking for more excitement, more flexibility and more satisfaction, consulting may be for you.

Looking for a career change? Don’t take that next job until you’ve fully considered what’s important to you.

Think consulting might be what you’re looking for but not sure where to start? Consider checking out the Consultant Journal store, which includes links to products that help you determine which type of consulting business to start (for everybody or for moms in particular), how to set your consulting fees, and an online course that helps you jumpstart your consulting career.

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Toyota Highlander ad series review

Toyota Highlander ad series — I’m posting the extended versions of several ads here. On Tuesday on CBC Radio, I’m going to be discussing the Toyota Highlander ad series where the cute blond boy proclaims: “Just because you’re a parent, doesn’t mean you have to be lame.”
In advance, here are some clips of the Toyota Highlander ad series.

Repositioning for higher earnings

Could you be making more doing something else? It’s a question I encourage entrepreneurs to ask from time to time. While you want to be on target with your goals – business and personal – it sometimes makes sense to examine the ways in which you meet those goals. Sometimes, you can build a new revenue stream or even ramp up your current earnings simply by making a few changes.

Let’s say you’re a math tutor. You make $30 to $50 per hour, although you have to travel to the homes of your students. You’re also stuck working from 3 pm to 9pm, when your students are home from school. Could you make more doing something else? Is there another line of work that will deliver higher consulting fees for doing essentially the same thing?
 
Well, let’s say you repositioned. You know you’re strong in assessing client needs, planning how to deliver information, coaching and mentoring, and managing the client relationship. You’re also obviously strong with math. What if you repositioned to provide math skills building for the business market? Let’s say you repositioned to create a side business that delivers math education for business leaders. You could:
  • Create a continuing education course called “10 ways to increase business profits with better math skills”
  • Develop a half-morning seminar called “Math smarts for non-techies” and pitched it to marketers, HR professionals, communicators and other non-math professionals
  • Build “scoreboards” to help professionals measure success in marketing, HR and other areas
  • Offer coaching for executives who want to be able to think on their feet in meetings and do math in their heads, so that they can make better business decisions
  • Run your own GMAT prep numeracy courses for people who want to get into MBA programs
All those programs would most likely command far more than $30 to $50 per hour. In fact, with a little planning, you could be billing hundreds of dollars per hour. And you’d pretty much be doing what you already do.
 
So, could you be making more doing something else? Do you have an inner consultant in another area, just waiting to be unleashed?
 
Related
 
Do you offer services to consultants? Check out our consultant service directory listings.

Reinvention Summit & Free Ebook

I just got an email about the world’s first Virtual Summit on the future of storytelling – The Reinvention Summit.

Desk jobs and joint aches, pains and health

If you work at your desk all day, you may not always sit in the best position. And that can leave your joints feeling sore. I recently wrote about joint health for BC Living Magazine and thought I’d share the article: Boning up on joint health.

Over the years, I’ve had problems with joint pains and joint health. I was in a car accident that gave me whiplash and thus knee pain, back pain, hip pain, nech pain, arm pain — you name it! Because I’m unable to take ibuprofen and I found myself pregnant or nursing during much of that time, I had to turn to natural treatments and natural joint pain solutions. For me, hot baths, physiotherapy, ice and heat, exercise, muscle training, Tylenol, mindfulness and other natural approaches were really my only options. I also chose a more ergonomic chair and made sure that I held my neck and body in good positions.

Do you have joint pain?

Become an independent consultant

Become an independent consultant – start your journey with our answers to what consultants do, what skills they have, how they get into the field and why you’d want to join them.

The tragic life and death of Pets.com

Pets.com died a miserable death just 10 years ago this week. Back in 1999, Pets.com was one of the hallmarks of the dot-com era and its death signified the dot-com crash. The

Have the confidence to see yourself as an expert

Have the confidence to see yourself as an expert. When thinking about whether to become an independent consultant, you may wonder whether you can really bill yourself as an expert.

Don’t get bogged down in the concept of being the absolutely best. Understand that there will always be someone who knows more than you about your industry. But you certainly know more than most people, and that’s what your clients value about you–to your clients, you are an expert. Have the confidence to see yourself as an expert.

For example, as a jury consultant, you know more about jury behaviour than almost all of the population. True, there may be a superstar jury consultant who has more experience than you, but you know a lot. Be confident and focus on what you do know.

The key is to have the confidence to see yourself as an expert by building your expert status in concrete ways. Wondering how? Subscribe to Consultant Journal’s newsletter and receive Six Tips for Jumpstarting Your Expert Status when you sign up.

Above all, you’ve got to have the confidence to see yourself as an expert. Have confidence in yourself and your clients will too.  Are you confident enough to consult?

Your confidence will grow over time. Give your confidence a boost and start building your expert status now.

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Starting a consulting firm

Starting a consulting firm can become a reality. Have you always dreamed of starting a consulting firm? Stop dreaming and start planning. Soon enough you too can start a consulting company.

Starting a consulting firm can be broken down into a few key steps:

1. Choose your niche

Starting a consulting firm begins with a niche. What type of consultant will you be?

2. Choose your clients

The more specific your client base is the easier it will be to market your services. Choose your clients.

3. Set up your office

Whether you’re starting a consulting firm that’s home-based or out in the public eye, you’ll want a clear, clean place to work. Set up your office.

4. Start marketing

Starting a consulting firm means getting your name out there. Understand your market and start marketing your services. Want to know the secret to marketing your consulting company? It’s all about relationships.

5. Start consulting

Once you’ve landed your first client, do your best work. Pull out all the stops, because your existing and past clients are your number one priority. They will give you referrals and they could end up coming back to you again and again. Start consulting!

Starting a consulting firm can become a reality. Whether you’re planning on jumping in with two feet starting a consulting firm from scratch or whether you’d like to start slow and keep your day job, it can be done.

Are you looking for mentorship to help you get started? Consider registering for the Become a Consultant: How to Make the Leap course. With audio and written lessons, 25 exercises, discussion forums and more, you’ll have mentorship in your journey to consulting.

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Do consultants charge tax?

Do consultants charge tax? It’s a legitimate question. Whether or not consultants charge tax depends on many factors.

Your location – Do consultants charge tax?

In order to determine whether you should be charging tax as a consultant, make sure you’re heeding advice that pertains to your own country and state or province. If you’re in the United States, the easiest way to determine whether to charge tax is to contact the Internal Revenue Service, as well as your state. If you’re in Canada, contact Service Canada and your provincial government.

Don’t simply go by what other consultants are charging. Get tax information straight from the source.

Your client’s location – Do consultants charge tax?

Whether you charge tax will also depend on the location of your clients. If you offer services over the web you may have to charge different taxes to different clients depending on their location.

Your services – Do consultants charge tax?

The type of taxes you charge may depend on the type of services you offer. Once again, get guidance straight from the source! Be sure to clearly indicate which services are taxable on your invoice.

Your income – Do consultants charge tax?

The taxes you must charge may depend on your income. Because your income will change over time, be sure to reevaluate your taxation policies on a semi-annual basis.

As you can see, the answer to whether you should charge tax depends on your location, your client’s location, the type of services you provide and your income. When in doubt, contact the government in your area or seek advice from your financial advisor regarding whether to charge taxes.

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Major update to Consulting Fees guide

Today, I’m excited to announce the launch of the second edition of Consulting Fees: A Guide for Independent Consultants. I’ve completely overhauled the original guide and expanded it to 124 pages. To help you move your businesses to the next level, I’ve added a major section on Solution-Based Fees, which includes help in overcoming any emotional blocks you may have in charging fees that represent the value of the solutions you offer.

Independent consultant rates

Independent consultant rates are something that all consultants are curious about. What should your independent consultant rates be? How much are your peers and competition charging? Are your independent consultant rates to low or too high?

Setting your rates as a consultant is crucial. Charge too little, and you’re short-changing yourself and making it more difficult to succeed as a consultant. Charge too much, and you might find it difficult to get off the ground when you become an independent consultant.

If you’re charging independent consultant rates you want to feel confident in what you’re charging. And how do you gain confidence in your fee structure? Confidence and knowledge are intertwined. You want to understand the rationale behind your rates and understand what you offer your clients.

I’ve written countless articles on this topic, as well as a comprehensive book that will help you learn a system for setting consulting fees: Consulting Fees – A Guide for Independent Consultants.

Remember, as a consultant, there is almost nothing more important than your rate. Independent consultant rates send a message about your value and can mean the difference between success and financial freedom.

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Consulting fee formula models

Consulting fee formula calculations may feel daunting. But feeling confident about your consulting fee formula and model can make a huge difference to your business. When you feel certain about the approach you’re taking to setting fees, you’re in a better position to deal with clients who want you to knock off a few dollars, increase the scope or simply not pay at all.

Tips for your consulting fee formula

The following consulting fee formula article can help you work through various models for setting fees. But, more than anything, reviewing the entire way you build, market and deliver your business services may help you in the long run. As mentioned in Consulting Fees: A Guide for Independent Consultants, your emotions and self confidence tie into the money you make in the long run. Regardless of the formula you use to set your consulting rate, you have to feel secure.

Side jobs and second jobs

Side jobs and second jobs are more common than you think. Side jobs and second jobs aren’t just held by those struggling to make ends meet. No, side jobs and second jobs are held by people from all income brackets, including managers, teachers, and top-level executives.

Why would employed people want to take on side jobs and second jobs? For example, you may have a hobby that costs a lot of money. But what if, instead, you chose side jobs and second jobs as your hobby? You’d be eliminating the costs associated with your hobby and replacing the costs with an income!

There are many reasons to have side jobs and second jobs:

  • To earn extra income to pay down debt, go on vacations, etc.
  • To gain experience in an industry that interests you
  • To spend your free-time in a productive way
  • To offer you job satisfaction
  • To replace a hobby
  • To work towards a transition to a full-time career change

If you’re interested in making some extra income, building your own business and working from home, side jobs and second jobs may be perfect for you. Check out this list of ideas for second jobs.

Of course, you could always consider whether you want to become an independent consultant as your side job. Consulting is a common idea for side jobs and second jobs because as a consultant you can earn a very high hourly wage. If you want to find out more about what it takes to become a consultant, check out the becoming a consultant FAQs.

Check out my book on Side Jobs:

 Side Jobs - Second Jobs, Side Gigs & Part-time Businesses Ebook

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What to do during downtime

What to do during downtime is a common question to ask after you become an independent consultant. As a consultant you may find yourself in a feast or famine work cycle where you are very busy at some times and in a lull during other times.

When in a lull you may wonder what to do during downtime. Of course, downtime can be a great time to catch up on your personal life, take a breather, ramp up your marketing, reorganize your office or catch up on old business. In fact, a friend wanted to become a small business consultant, and she now spends her downtime meeting with small business owners in her community.

But when I think about downtime I think about diversifying my income, and I tend to work on passive income projects.

Passive income is income that doesn’t require any additional work on your part. In other words, "passive" income is not directly tied to your time or energy (hence the concept of "passive" income). Generally, passive income refers to something that can be sold over and over without any additional effort on your part.

Some examples of passive income are:

  • Selling advertising on a website
  • Selling e-books
  • Selling software
  • Selling graphic design templates
  • Selling digital art, such as icons
  • Selling packaged digital goods
  • Earning referral fees

What to do during downtime is up to you. But if you know more projects are around the corner and you don’t need to be hitting the pavement marketing your services, I encourage you to think about building passive income streams.

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30 things I love about being a parent entrepreneur

A list of 30 things I love about being a parent entrepreneur.

Even I have my days

I’ve been a consultant for more than 13 years. I love consulting and I love helping other people get into it. Heck, I’ve written hundreds of articles on consulting for this site. I’d have to love what I do to pump out that much content! But even I have my days.

Become an independent consultant

Learn from our seven steps to becoming an independent consultant. Find out how to get on the path – and support your journey with our 1,000 articles on the world of indie consulting.

Digital cameras for business

Digital cameras for business are becoming increasingly common. Many large organizations have digital cameras in office, and that goes for consultants, too.

Digital cameras can be used for many business purposes, including taking photos to include in presentations and proposals, to document change, to capture people and ideas and to promote products or services. Many smartphones have digital cameras built right into them, and smartphones can be great to snap quick pictures as reminders. But if you plan to use your photos for public consumption, opting for a high quality digital camera–perhaps even a digital SLR camera–is wise.

Professionals should have a dedicated digital camera for business use instead of using a personal camera for both home and business use. Why? Because if you’re sharing one camera for both purposes you’ll never have the camera when you need it: when you want your camera at home it’ll be at the office, and vice versa.  However, if you work from home, distinguishing business versus personal is not as important. If you do buy a digital camera to use in your business, don’t forget to consider the tax benefits of your purchase.

What do you think about digital cameras for business? Are digital cameras for business necessary? How do you use digital cameras for business purposes?

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Become a small business consultant

Become a small business consultant today and enjoy the benefits and freedom of being a consultant.

What is a small business consultant? A small business consultant is an independent consultant who helps other small businesses thrive by offering advice and an outsider perspective.

Here are the top questions about how to become a small business consultant.


1. Who should become a small business consultant?

Unlike some consulting niches, small business consultants come from varied backgrounds and certification is not required. Invariably, though, small business consultants should have experience working (or studying) successful small businesses.

Small business consultants need to have an understanding of the following areas:

  • Defining small businesses
  • Growing small businesses
  • Attracting customers
  • Identifying problems and proposing solutions
  • Business strategies
  • Marketing strategies

2. How long does it take to become a small business consultant?

The length of time it takes to become a small business consultant can vary greatly. Being a small business consultant means developing a rapport with small businesses. The length of time it takes to attract clients depends on your network, marketing skills, expertise, social skills, confidence, expertise and many other factors. Check out this article that explains how long it takes to become a consultant.

3. What are the benefits of being a small business consultant?

Besides the basic benefits of being a consultant, small business consultants report high levels of job satisfaction because they help small businesses grow and witness the changes firsthand.

4. I’ve decided to become a small business consultant. Now what?

In order to become a small business consultant you’ve got to take the leap! If you’ve done all your research and you think you’re ready to become a small business consultant, then you’re ready to start building your expert status. Want to know how to build your expert status as a small business consultant? Subscribe to Consultant Journal’s newsletter and receive Six Tips for Jumpstarting Your Expert Status when you sign up.

Want help in making the transition to consulting? Enroll in the official Consultant Journal course — Become a Consultant: How to Make the Leap. With audio and written lessons, 25 exercises, discussion forums and more, you’ll have mentorship in your journey to consulting.

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Average consulting rates

Average consulting rates vary from industry to industry. If you’re pondering average consulting rates, you probably need to finetune your search. Here’s how…

Back to school time for business owners

Ah, it’s the Friday before the last long weekend of summer here in Canada. We have Labour Day on Monday. Then, on Tuesday, it’s back to school time for my kids. I’ve been racing around trying to get booster shots, make appointments with the principal and teacher, source new BPA/lead/PVC-free lunch containers, go to meet and greets and so on. But, in the midst of all this, I haven’t forgotten myself or my own business.

You see, I see the fall as back to school time for my business too. Going into September, I’m reviewing my progress on my goals for the second half of 2010. I’m setting up a meeting with my mentor. And I’m scheduling meetings with my entrepreneur’s group, going to a few professional association meetings and perhaps taking part in a few panel discussions. Soon enough, I’ll be plowing into some reading too. I don’t know about your part of the world, but everybody slows down in August here in Vancouver.

If you’re looking to hit the books for your consulting business, take a look at our Discover Your Inner Consultant and Consulting Fees ebooks and our Become a Consultant ecourse.

Average consultant fees

Average consultant rates tend to be, well, typical. If you’re hiring or working as an average consultant rates should be lacklustre – because, well, they’re average! What’s more important is the value provided by the consultant.

Work out your hourly rate

Work out your hourly rate considering all the important factors and it could mean the difference between just scraping by versus making a sizable income.

In order to work out your hourly rate you have to consider more than the going rate. Really, you should be thinking about your overall fee structure and the way you want to charge for your expertise. Rather than try to work out your hourly rate, first consider all the options:

  • Set fees based on the project;
  • Set fees based on performance;
  • Work out your hourly rate and charge by the hour;
  • Set consulting fees by using real-life data.
  • Among other options.

Instead of wondering how to work out your hourly rate, consider other methods of charging for your time and expertise. Which method will work best for you? Which method works best for your industry? How do other consultants in your niche bill?

Even if you do work out an hourly rate, be sure you’re considering all the relevant costs that consultants occur.

If it’s time to work out your hourly rate, first consider purchasing my guidebook to make sure you’re covering all the bases: Consulting Fees: A Guide for Independent Consultants. Remember, you’re worth it, and your rates should reflect that.

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Kid health insurance plans

Kid health insurance plans – if you’ve got kids, you may wonder about what sort of health insurance plan you should be looking at. If you’re in the process of evaluating plans that provide health coverage for your children, consider the following:

Average IT consulting rates – tips and tricks

Average IT consulting rates may be part of doing your due diligence. If you’re looking for average IT consulting rates, you have to first identify your goals in seeking it.

Best request for award nomination ever

This email from Kerri Carlson about running Every Woman in the World and juggling parenthood isone of the most hilarious, moving and accurate portrayals of being a parent entrepreneur ever!

When you should subcontract?

Dear Consultant Journal:

I’ve been running my consulting business for a few years now. I have established a network and I get a lot of leads. And sometimes I’m working on project teams where I know that, if I was in the lead, I could be managing some of the vendors. How do you know when you should start subcontracting?

- A.L.

Dear A.L.:

Ultimately, it’s up to you and the amount of measured risk you’re willing to take. But learning to subcontract can be very rewarding. For example, the founder of this site, Andrea Coutu, grew her freelance writing business into a strategic management consulting firm, which means she doesn’t have to be there 24/7 to be making money. The great thing about involving other people is that you don’t have to do EVERYTHING yourself, you don’t have to know everything and you don’t have to be be working on that project to be making money from it. It’s unfortunate that many freelancers and consultants feel compelled to do all the work themselves and then end up working MORE than they ever wanted to. If you start subcontracting, you might find that "risk" gives you more control!

Check out seven signs that tell it’s time to start subcontracting.

Personal inventory – taking stock of yourself

Personal inventory taking a.k.a. taking stock of your unique attributes can help you determine your future in self employment. Your personal inventory can help you figure out how your skills, experiences, strengths, weaknesses, goals and interests all fit together. By getting a better sense of your personal inventory, you can figure out who you are and what you have to offer – and just how self employment might fit into that.

Personal inventory can launch your dreams

Many people dream of self employment, but freeze up when it comes to actually doing something about it. That’s understandable. Not every dream needs to be explored. But taking the time to figure out what your dreams are and how who you are fits into those dreams can help you uncover your potential. And a personal inventory can help you explore who you are in depth.
 

Personal inventory can help with overcoming obstacles

Moreover, by taking the time to work through your dreams and interests, you may discover solutions to problems you thought were unsolvable. For example, some people worry about letting go of their day jobs, so, for them, starting a side business may be the best option. Others worry about carrying all the weight on their own shoulders, so they seek out business partners, joint venture partners and mentors. Still others get nervous about income fluctuation, so they build up solid emergency funds.
 
A personal inventory can help you get a strong sense of who you are, so you can build an action plan to achieve your dreams. And that confidence will serve you in good stead, whatever path you pursue.
 
If you’d like to work through a personal inventory, consider our Discover Your Inner Consultant or, for parents, Discover Your Inner Entrepreneur (for Moms).
 

Related to personal inventory

 

What to charge for consulting – 5 starting points

Knowing what to charge for consulting can be tricky if you haven’t got a plan. But, with a little research and planning, you’ll be able to work out what to charge for consuting fees — and say it with confidence.

Debt snowball method

Debt snowball method — have you heard of it? The debt snowball method is a simple debt management strategy that combines psychological motivation with an effective debt reduction strategy.

Debts can feel overwhelming, especially when you have multiple creditors each seeking their minimum payments. But the debt snowball method may help you feel in control of your finances.

In a nutshell, the debt snowball method works as follows:

  • Make all of your required minimum payments on all of your loans every month;
  • List all of your loans from lowest amount owing to highest amount owing;
  • Funnel all extra and available income to the loan on which you owe the least amount of money (Loan A). Continue doing so until Loan A is paid off.
  • Once Loan A (your smallest loan) has been paid off, choose the next smallest loan (Loan B) and funnel all available income into that debt.  But there’s one more key step…
  • Remember the minimum payment that you used to pay into Loan A, but you don’t have to pay it anymore because Loan A has been eliminated? Well, set aside that minimum payment amount, but commit that payment every single month to Loan B instead.
  • Continue until all debts have been eliminated.

The appeal of the debt snowball method is that, by choosing to pay off your smallest debts first, you see results, which motivate you to stay with your debt elimination strategy.

The debt snowball method isn’t necessarily the wisest debt reduction strategy. In fact, I generally recommend paying off loans with the highest interest rate first. However, many people choose the debt snowball method for loans that have similar interest rates.

You may want to supplement your debt reduction strategy with a second job, consulting, financial restrictions or other measures that will help you make significant inroads in your debt load.

The debt snowball method is an often-recommended strategy because of its simplicity and its efficacy. Consider all the options and then choose the debt management strategy that works best for you.

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Building credit for your small business

Building credit for your small business is important because you never know when you’ll want access to more funds, be it for expansion or to help out in a pinch. And what better time to think about building credit for your small business than now,  because credit is easier to build when you’re riding the wave of success.

Building credit for your small business is similar to building personal credit; however there are a few key distinctions:

Clear distinction between business and personal

Even if you run your business as a sole-proprietorship, be sure to clearly distinguish your business and personal finances. You’ll want to demonstrate a clear paper trail of your business’s financial transactions, including all income and expenditures. This may include opening a business bank account and even a business credit card.Having corroborating documentation is key. For instance, if you pay all of your expenses with a small business credit card, you’ll have monthly statements to document your business expenses, but you’ll still want keep receipts and invoices as well.

Business credit card

Most credit cards charge exorbitant interest rates so avoid using them to carry debts. However, business credit cards that are used frequently and paid off to zero every month can be a great way to start building business credit for your small business. Get a business credit card today and start building your credit rating.

Apply for a line of credit

Ideally, apply for a line of credit before you start your business. Remember, having access to a new business line of credit doesn’t mean you have to use it. So consider building credit for your small business now because it’s better to be prepared than to have to scramble in the event of an emergency.

Overcoming bad personal credit

Building business credit is not a substitute for a personal history of bad credit. Business creditors will take your personal credit into account, so continue improving your personal credit while building your business credit. In fact, consulting can be a flexible way to get out of debt.

Building credit for your small business

Building credit for your small business is similar to building personal credit. Show a clear history of timely payments on products like lines of credit and credit cards, and you’ll be on your way to building credit for your small business.

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How to become a consultant in your own field

How to become a consultant in your own field — it’s a question on the mind of many. Figuring out how to become a consultant in your own field can help you achieve dreams, such as financial independence, flexibility, balance, control and self empowerment.

If you’re wondering about becoming a consultant, you may be interested in the 2,000 free articles here at Consultant Journal. To get started, take a look at:

Bluetooth products and your business

You may have heard Bluetooth a few times – maybe you even ownsome Bluetooth products. But do you know what Bluetooth means? Bluetooth is a way of exchanging data over short distances.

Commercial Equity Line of Credit (CELOC) may help your business

Commercial Equity Line of Credit, known for short as CELOC, can help small businesses – especially start ups. A commercial equity line of credit (CELOC) allows a business to borrow money on a regular basis so that they can finance their business. Usually, you can just write out a check when you need the money. It’s an operating loan where you can just borrow what you need as you need it.

Debt consolidation loan calculators – how they can help you

Debt consolidation loan calculator sites are all over the web. If you’re in debt, it’s worth looking at what these debt consolidation calculator sites would suggest your monthly payments could be.

Bad credit debt consolidation loan

Bad credit debt consolidation loans are a good idea if the numbers work. However, bad credit debt consolidation loans are not the only option for getting out of debt.

In order to figure out if a bad credit debt consolidation loan is right for you, you need to get a sense of your overall financial picture.

Most people who struggle with debt dislike thinking about money. Of course, it can be easy to feel overwhelmed when being hounded by creditors. But if you can set aside a few hours to consider your financial future you can save yourself hundreds of dollars per month. Stick with me here. You can do this.

Grab a piece of paper, your telephone, a phone book, and a calculator. Write down how much you owe to each creditor, write down the interest rate, and write down your minimum monthly payment, including credit cards. If you don’t know what the interest rate is, call your creditor and find out.

Bad credit debt consolidation loans are usually in order if you are unable to make all of your monthly minimum payments. Bad credit debt consolidation loans are simple: a debtor buys all of your loans, pays them off, and then you owe the debtor and can pay the debtor one monthly payment.

However, bad credit debt consolidation loans are not the only option. The debt-snowball method is another idea that may work better for some.

Nonetheless, whichever debt repayment method you choose, be sure to make your minimum payments and work towards improving your credit rating. Reading about bad credit debt consolidation loans is the first step. Now take the plunge and get your financial house in order.

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Free tips on jumpstarting your expert status

Whether you’re dreaming of consulting or already running a business of your own, you probably know that gaining expert status can help you with building client relationships. That’s why we offer Six Tips for Jumpstarting Your Expert Status when you sign up for our newsletter.

The next issue of the newsletter is due out in the next week or so, which makes this a great time to sign up.

Why get a line of credit for small business

A line of credit can help you better manage your small business, assuming you can manage the credit itself. When I first opened my consulting business, I avoided debt like the plague. That meant going on a strict cash basis, avoiding a credit card or a line of credit. But, over the years, I’ve loosened my standards and realized that a little credit here and there can actually help with growing a business.

Trial consultant – a key legal team member

A trial consultant brings expertise to a legal team, before, during and after a trial. A trial consultant works with a lawyer, often choosing jurors, performing mock trials, running focus groups, organizing testimony, setting up shadow juries, and providing comment on the trial and the lawyers themselves.

Jury consultants

Jury consultants can help a legal team make or break a case. As human behaviour experts, jury consultants help lawyers understand jurors, prepare for trials, manage trials and understand what’s going during a trial.

Jury consultant

Jury consultant – a key to winning high stakes legal cases. A jury consultant works with a legal team during jury selection, a trial and sometimes post trial. In most cases, a jury consultant is hired for expert insight into human behaviour – not for knowledge of law itself.

Authentic Consulting – bringing authenticity to consultancy

How is authenticity demonstrated as a consultant? According to Ryan and Bellman: “Authenticity is the difference between being and playing.”

Becoming an independent consultant

Becoming an independent consultant can dominate your thoughts, if you’re looking for a change. Becoming an consultant and being independent often appeals to dreams of freedom, control of your own destiny, financial reward, lifestyle, time for yourself and family. Taking the leap from dream to reality can be an empowering journey.

Hourly consulting rate

Hourly consulting rate calculations can leave even the savviest consultant feeling frustrated.

Canadians: buy now and save on HST

If you’re Canadian, you probably know the HST sales tax rolls in July 1st. Now is a great time to visit the Consultant Journal store, since there’s only GST right now.

How many hours do you work as a consultant?

How many hours do you work as a consultant? Okay, now, how many of those hours are actually consulting? How much time are you actually spending on just consulting?

Should you take every job?

Many new consultants wonder if they should ever take the risk of turning down work. But accepting every job carries risks too.

Mary Kastle – special offer for Consultant Journal readers

We adore the music of Mary Kastle, who we’ve written about a few times before. With her business in full swing, she’s back with a new CD.

How a smart phone can help your business

Get an edge in your business by shifting key activities to a smart phone.

Marketing for counselors – counselors need marketing too

Marketing for counselors may seem like an uncomfortable area for many people used to being in a helping profession. But counselors can succeed with marketing based on their values, just like any other consultant or small business owner can. If you think of marketing as something “evil”, it’s probably because you’ve encountered marketing that doesn’t fit with your values.

Marketing for counsellors – counsellors need marketing too

Marketing for counsellors may seem like an uncomfortable area for many people used to being in a helping profession. But counsellors can succeed with marketing based on their values, just like any other consultant or small business owner can.

Counsellors’ marketing needs

Counsellors and consultants are alike in that they need to determine their unique position in the market, work out the best way of connecting with clients, and then build a profitable, sustainable business. Word of mouth is key, but a good marketing plan can help you work out how to generate and sustain the power of referrals. Knowing what business would work for you and what your values are, planning your business, and setting fees are common to counsellors and consultants alike.

As with many licensed professions, counsellors also need to examine the rules and criteria set out by their professional associations. Of course, in reviewing your values, this also comes up.

If you’re looking to market your counselling business, the following articles may help:

Marketing tips

Consulting contract example

Consulting contract examples are something that some consultants don’t take much time to consider. I mean, you’re a new consultant. You’re busy building your expert-status, finding new clients, and meeting your clients’ needs. As a result, for some passionate consultants, the financial and legal aspects of their business take a back-seat. But contracts are a key to your business.

You need contracts. Contracts protect you, and they help your client understand what’s involved and included in your work.

Most consultants work from a basic consulting contract example, which they modify for each new project or client. Since you’ll be reusing this contract again and again, you’ll want to start with a solid consulting contract example that you can trust. 

Generally, consultants work with a lawyer to draft a basic consulting contract example template. But it’s not always necessary to go that route. In fact, I considered working with a lawyer to draft my templates, but, having reviewed what US Legal Forms has to offer, I decided not to reinvent the wheel.

Remember, asking your clients to sign a contract is not interpreted as an inconvenience; the fact that you require a signed contract establishes your professionalism. So don’t shy away from using consulting contracts.

Get yourself a solid consulting contract example from a trusted source, like US Legal Forms. That way, both you and your client will be protected.

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How to become a tutor

How to become a tutor – are you wondering where to begin? Learning how to become a tutor is easy. In order to become a tutor, you should first have an area of specialization. Tutors can specialize in a number of subjects:

  • Math
  • Marketing
  • English
  • Writing
  • Business
  • Sciences
  • Music
  • Languages
  • Test preparation
  • And many other areas of specialization

As a tutor, your clients could range from elementary, high school and university students to business professionals.

Becoming a tutor can start one of two ways:

1. Getting hired by a tutoring agency

Getting hired by a tutoring agency is a great place to learn how to become a tutor if you are new to the tutoring industry.

Tutoring agencies can help you determine how to become a tutor, including understanding how much to charge and what is expected of you. To find a list of local tutoring agencies, check the Yellow Pages under tutors.

When contacting a tutoring agency, be sure to have a specific area of specialization and a polished, up-to-date resume on hand. Your resume should highlight your experience and any credentials that relate to the area you wish to tutor in.

2. Starting your own tutoring business from your own home or office

The benefits of working for yourself as a tutor are varied, but most independent tutors appreciate the flexibility. How to become a tutor may seem overwhelming if you’re going it alone, but starting your own tutoring business is doable.

If you’re starting up your own tutoring business, you’ll need to determine the following:

  • Do you have enough expertise to become a tutor?
  • How much will you charge?
  • Where will you tutor your clients?
  • How many hours per week will you tutor?
  • Who will be your target clients?
  • Where will you advertise?

In order to answer these questions regarding how to become a tutor, you’ll want to get in touch with other tutors in your area. Starting your own tutoring business is similar to starting a consulting business. Still wondering how to become a tutor? Don’t postpone it any longer. Find a tutor in your area and get first-hand information on how to become a tutor!

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Canadians – order before the HST comes in

Canadian readers – just a quick note to remind you that, if you place your orders before July 1st, you can avoid the upcoming HST and only pay GST. Consultant Journal is based in BC, so that means you’re only dealing with GST of 5% right now.

That means this is a great time to order your one of the Consultant Journal guides or workbooks or the Become a Consultant course.

If you live outside Canada, you need not worry about these taxes.

 

Self Employed Rates: an entire site for your perusal

When I started Consultant Journal four years ago, I had no idea it would become so popular. I initially thought it would just be a place for me to record some tales from life in the trenches as a consultant. Readership grew, though, and soon my posts on setting rates, negotiating credit cards and loans and so on also became popular. And although many of you come here to learn about consulting, still others are keen to learn about self employment in general.

Still, while consulting is often self employment, not all self employment means consulting. And many of my readers want to learn about finance issues in self employment. So, with that in mind, I’ve launched Self Employed Rates at www.selfemployedrates.com. You can expect to read about credit cards, loans, funding, medical insurance, business insurance, car insurance and more.

Thanks for your support on my journey to date. I have enjoyed — and continue to enjoy — helping you with self employment. I hope some of you will find the articles at Self Employed Rates helpful too. 

Tips for new consultants

Tips for new consultants are invaluable. I’ve taken some time to round up some of my best tips for new consultants:

Getting started

When you’re getting started, there’s a lot to consider. How much money will you need to get started? Is consulting viable in your industry? Will you need to become certified? What about business cards? What about health insurance for the self-employed?  And should you be charging taxes? For more details, check out the becoming a consultant FAQ.

Choosing your niche

One of the best tips for new consultants is to get specific about what you can offer your clients. Here at Consultant Journal I’ve written over 800 tips for new consultants, and I’ve covered dozens of ideas for becoming a consultant, including:

  1. Become a home staging consultant
  2. Become a mortgage consultant
  3. Become a clutter consultant
  4. Become a skin care consultant
  5. Become a legal nurse consultant
  6. Become a philosophic consultant
  7. Become a sports nutrition consultant
  8. Become a sales consultant
  9. Become a grant writing consultant
  10. Become a prenatal and postnatal fitness consultant
  11. Become a restaurant consultant
  12. Become an information technology (IT) consultant
  13. Become a Tupperware consultant
  14. Become an Avon consultant
  15. Become an online business backup consultant
  16. Become a social media consultant
  17. Become a Mary Kay cosmetic consultant
  18. Become a marketing consultant
  19. Become an online researcher
  20. Become a personal chef
  21. Become a weight loss consultant
  22. Become an art consultant
  23. Become a copywriting consultant
  24. Become a fitness consultant
  25. Become a wedding consultant
  26. Become a graphic design consultant
  27. Become a life coach consultant
  28. Become a CHRP consultant
  29. Become an HR consultant
  30. Become an image consultant
  31. Become an environmental consultant
  32. Become a tax consultant
  33. Become a financial consultant
  34. Become a management consultant

I’ve also put together a comprehensive guide to help you Discover Your Inner Consultant: A Guide for Discovering What Consulting Business You Could Start.

Setting rates

Not sure what your consulting rate should be? Having a thorough understanding of what you need to charge as a consultant can mean the difference between just paying the bills and making an amazing living. Understanding consulting rates is key.

For all the inside scoop, take a look at Consulting Fees: A Guide for Independent Consultants.

Marketing your business

I’ve written a lot about how to market your business and how to land new clients. Take a look at my five-part series, Finding New Clients.

Managing your clients

Once you’ve become a busy consultant, you may find yourself having to manage a wide variety of clients. And, yes, sometimes you’ll even be turning away work.

Work-life balance

And don’t forget the reasons you became a consultant in the first-place. Take care of yourself and your family, and make sure your work-life balance is appropriate for you.

These are just a few tips for new consultants. Good luck on your journey!

 

Carol Burnett on falling down

Comedy star Carol Burnett has seen her fair share of good and bad. But she points out that learning that you can get through failure is part of being able to succeed:

Health insurance for the self employed

I’m thinking about getting some private health insurance. Have you done this? 

What do you think about the options? Is it worth adding on dental and vision?

 

Financial concerns – what are yours?

Open thread today…what are your top financial concerns for your business or personal life?

Go ahead…jump in and let’s talk money today.

What do you love about consulting?

What makes consulting a good fit for you?

Why I didn’t do a PhD: consulting rocks

Throughout my 20s, I thought about doing a PhD. A three or four trusted mentors encouraged me to go after a PhD, because I love research, discovery, writing, publishing and teaching. I thought about it really seriously, but, in the end, I changed my mind.

 
Why? I realized I could achieve all those goals through my consulting business. As a consultant, I have:
  • Mentored students, new workers, contractors and new consultants
  • Coached entrepreneurs and executives
  • Published three ebooks
  • Written more than 1,300 articles – for magazines, books, websites and blogs
  • Researched everything from Shakespeare to hubs and routers and from dental implants to banking software
  • Had my work featured in a textbook
  • Developed a course to help people start and run consulting businesses
  • Taught at the university level, including for the University of British Columbia
  • Been invited to speak at association
  • Been hired to speak professionally
  • Developed a consulting methodology based on my independent research
  • Earned a very competitive living
In the next few years, as time allows, I expect to expand my business, publish a book in print, and do more speaking.
 
I can’t think of a reason to do a PhD. I mean, I could become a prof, but I no longer see a need to do so.
 
Have you ever thought about academia?
 
 

Consulting skills – an ongoing investment

Consulting skills can help lift your career — and business — to new heights. By taking the time to review and improve your consulting skills, you can gain more control over the direction you’re headed in.

When I started in consulting, I had great technical skills. I could lay out marketing strategies, create marketing tools, manage projects and so on. But managing client relationships, sales, proposals, invoicing, contracts, my business plan and so on were totally new to me. I had the skills to succeed as a marketer, but now I needed to figure out how to run a marketing consulting company.

Fortunately, my background in marketing and my love of people gave me the foundation to get my business going. I took part in an entrepreneur program, which helped mentor me and connect me to some great people. In fact, all these years late, I still keep in touch with many of those people — some as friends, some as clients, some as both and some simply out of an interest in finding out where we are these days.

For me, learning to manage client relationships has been the most valuable part of my journey. I’ve learned to see my clients as people who love their businesses and who have a lot at stake. If they’re not buying into my vision, then that’s because I’m selling them my vision — and not working with theirs. I’ve learned my clients are the experts in their own businesses and that I’m there to guide them in their journey.

What consulting skills have been most important for you?

Celebrating still being here

It’s April 11th and that means it’s Consultant Journal’s fourth anniversary! Woot woot!

Distance education graduate programs in public relations

Distance Education Graduate Programs in Public Relations – I wanted to let you know about a new distance ed masters degree in PR.

Become a life coach

Become a life coach and start your journey into self-employment today.

Life coaches help their clients identify and then achieve goals. Life coaching can be one of the most rewarding types of consulting because life coaches help their clients in all areas of their lives. While life coaches aren’t counselors or therapists, life coaches do draw on multiple disciplines to help their clients improve their lives.

In order to become a life coach, the first step is to decide that life coaching is for you. Before launching your business, become an expert on what it’s like to be a life coach. Do research:

  • Speak to life coaches about their experiences;
  • Understand the complexities of the life coach certification process;
  • Understand how to set your rates;
  • Read books about life coaching;
  • Understand your local market;

There is ample online information about how to become a life coach. But don’t simply rely on online research. Get out there in your community and meet life coaches in your area. No one can give you a better sense of life coaching than those already working in the field.

Once you’ve fully grasped what it will take to become a life coach, consider specializing in one area: business, health, relationship, personal, or sport coaching.

Once you’ve done your research and have chosen to become a specialized life coach, you’re ready to launch your life coach consulting business!

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Become a graphic design consultant

Become a graphic design consultant and take advantage of the move to new media. Today, the demand for websites and visual marketing is higher than ever. Now is the perfect time to become a graphic design consultant.

Consider becoming a graphic design consultant if you are creative and have skills in Photoshop or similar graphic design programs. Graphic design consultants have to be skilled in graphic design, as well as in client and project management.

Not all graphic design consultants require diplomas or degrees in graphic design or mixed media. Of course, having such a background helps, but many graphic design consultants are self-taught.

Graphic design consultants work on a number of different projects, including:

  • website designs
  • logos and branding
  • brochures
  • business cards
  • labeling and packaging
  • and much more

Graphic design consultants usually position themselves as either print or web specialists; web specialists are often referred to as web designers as opposed to graphic designers. This distinction is important because the skills and tactics involved in print and web design are very different.

As a new graphic design consultant, one of the best sources of new work is other consultants and related businesses. New graphic design consultants should consider contacting marketing firms/consultants and website development businesses and consultants; they often require the services of a graphic designer and can be a source of a lot of business.

Becoming a graphic design consultant is simply one of the many types of consultants that you can become. If you are passionate about the web but are not skilled in the visual arts, consider becoming a social media consultant.

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I want to be a consultant

"I want to be a consultant…" Ah yes, those six powerful words. They’ve been known to change lives; they sure changed mine.

Just like attaining any other goal in life, it’s the desire to do something that starts a ball rolling. Once you’ve identified what it is that you want, your dreams suddenly become more attainable. You can see a path from that phrase, "I want to be a consultant," all the way to becoming a consultant.

Once you’ve decided that you want to be a consultant, then you can stop wondering and waiting. You can start planning on attaining your goal.

Are you thinking of becoming a consultant? Are the words "I want to be a consultant" keeping you up at night or getting you through a bad day at work?  Well, don’t spend another day wondering.

You don’t have to give up on your day job if you’re not ready to jump in overnight. Why not consider becoming a consultant as a sidejob? Or consider investing in the "Discover Your Inner Consultant" guide.

The next time you hear those words tickling your ears, listen. "I want to be a consultant."

Do you want to be a consultant? Think about it. Do something about it. Get started today. What have you got to lose?

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How’s your year going?

It’s March 1st. We’re starting the third month of 2010. How’s your business year going? Sure, you may not have a business year-end that reflects the usual calendar, but it’s helpful to do a check in.

What are you doing well at? 

What are you struggling with?

For me, I’m doing much better at tackling self care. On the flipside, I’m struggling with some short-term health care issues. But they’re becoming much more manageable and I can already see a huge difference. Self care has been an important part of resetting things. Learning to enjoy little things, like the taste of a raisin or the smell and warmth of a cup of coffee has become an important part of my day. By taking time during the day to recognize those little pleasures and the goodness they bring to my life, I’ve really grown. At the same time, business continues to boom. I can’t keep up with it all, but I’ve decided that’s okay. I’m focusing on what I love and what’s important to me. For me, this is a great opportunity to change the way I run my business and my life.

How about you?

What is a consultant?

What is a consultant? The idea of consulting can be confusing. Sure, you’ve met a few "consultants," but, in actuality, what is a consultant? What does it mean to be a consultant? And, better yet, how can you become a consultant?

What is a consultant?

Consultants are independent contractors who are paid hourly, per day, or per project. But rather than get bogged down in figuring out who is and who is not a consultant, let’s talk about how you could become a consultant.

When you think of consultants, you may think of seasoned PhDs billing hundreds of dollars per hour. Yes, there are many consultants who fall into this group. However, what you may not know is that there are thousands of consultants who are just regular people — some of them may even be stay-at-home parents, artists or other people you might not see as "suits".

Remember, in order to become a consultant, you don’t have to be the world’s foremost expert; you simply need to know more than your client knows. That way, you’re offering your client your expertise and knowledge, which he or she compensates you for in the form of a high hourly rate.

Now that you know the answer to the question, "What is a consultant," perhaps you are Interested in becoming a consultant yourself–even as a side job to pay off debt, to build your resume, or just to have more disposable income.

Who knows. Perhaps the next time someone asks, "What is a consultant?" you can answer, "Good question. Seeing as how I am a consultant myself, let me explain it to you."

Need help determining the most lucrative and successful ways to start a consulting business? Consider the Discover Your Inner Consultant course. Or just want to find out how much consultants make? Dive into Consulting Fees.

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Sample consulting estimate

Sample consulting estimates are hard to come by. New consultants often have little experience with setting consulting fee rates or they aren’t sure what to include in a project estimate. Setting your rate and accurately estimating what is involved in a project are crucial to consultant success. As a result, I’ve decided to include this sample consulting estimate to help new consultants.

Let’s start with the easy part. Similar to my sample consulting invoice, include the basics:

ESTIMATE
Name / Company Name
Address
Phone
Fax
Email
Web
US Federal Tax Payer ID (Business Number in Canada)

Date
Estimate number

CLIENT’S DETAILS
Contact
Company Name
Phone
Email

Next comes the most important part: what to include and exclude from your project estimate.

Billing by the hour

Billing by the hour is relatively straightforward once you understand how much to charge. For example, in your estimate you could state that Project XYZ may take approximately 100 hours and you’ll be billing hourly for your work.

If billing by the hour, most clients would like to see a maximum number of hours outlined in the estimate. For example, " Project XYZ will be billed hourly at a rate of $80 per hour up to a maximum of 200 hours."

Per project estimates

Many experienced consultants bill by the project, and, for the most part, I do too. Most clients prefer per-project rates because they know what to expect.

For example, in your estimate you could state that Project XYZ will cost $3100, plus applicable taxes. If it’s a large project, it may be helpful to both you and the client to break down the project cost into sub-sections so that the client can see how you’ve arrived at the total cost.

When billing per project, it is crucial that you outline what is and what is not included in the project. When possible, be sure to outline the project parameters in the estimate or in the contract (yes, you need a contract!).

If, as an IT consultant, your estimate and contract simply state, "I will fix your computer for $1000," this project is open to interpretation, which can lead to problems.

To you, the consultant,  "fixing" the computer may mean diagnosing a problem and recommending a solution. However, to the client "fixing" the computer may mean diagnosing the problem, recommending a solution and providing all of the required hardware or software required to implement the solution. This dispute over who is paying for the hardware or software could have been avoided by a clear estimate and contract.

Detailed estimates and contracts are one of the simplest ways to avoid miscommunication about what is and is not included in the project. Take the time to write detailed estimates and contracts. Not only will they increase your perceived professionalism, but they will protect you and your consulting business.

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How to earn money as a consultant

Want to know how to earn money as a consultant? It’s easier than you think. There are many ways to earn money as a consultant: social media consulting, IT consulting, home staging consulting, environmental consulting and much more.

Start by doing an inventory of your skills and experience. What are you good at? What do you love to do? Then determine how to work your passions into a lucrative consulting career.

If you’re interested in earning money as a consultant, you may want to make it your full-time career or you may simply want to consult as a side job. Either way, it’s important to focus on how to earn money as a consultant. No matter how much you love your work, work is work.

Many consultants choose to earn money on a per-project basis rather than an hourly rate. From the outset you must be paid fairly–and perhaps even generously.

Setting the appropriate consulting fee rates is integral to being a successful consultant. Being a consultant involves a lot of perks, but it also involves hard work and risk. Your hourly wage should and can reflect this. In fact, the average consulting fee ranges from thirty to hundreds of dollars an hour.

If you’re interested in how to earn money as a consultant, I encourage you to browse here at Consultant Journal. I’ve written over 800 free articles that help people just like you survive and thrive as consultants. You can do it. Start here and start now.

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What are your biggest financial concerns?

When you’re running or starting a business, finances tend to be a major consideration. Whether it’s paying your own mortgage or making payroll for a team of employees, money affects your life and your business.

Over the years, we’ve covered a wide variety of financial topics: consulting fees, second jobs, finance and more. In fact, our "Finance for Consultants FAQ" is a popular page — and it has a long list of our financial posts.

But what do you want to know more about? Credit cards, loans, lines of credit, write-offs, making money, health insurance, business insurance, leasing a car? Let us know. We’re listening. And we’re ready to research and help you find answers.

Become a CHRP consultant

Become a CHRP consultant and leverage your people skills. What is a CHRP? The initials CHRP stand for Certified Human Resources Professional, and CHRP is the professional designation used in Canada for experts in Human Resource management.

CHRPs are experts when it comes to recruitment, personnel management, union and employee regulation, performance appraisals, job descriptions, hiring and employee retention.

In Canada alone, there are over 19,000 certified CHRPs. There is increasing demand for CHRPs as organizations recognize the financial cost of bad hires and transient employees.

CHRP consultants

Many medium-sized business don’t have a full-time CHRP on staff. Instead, they seek out a CHRP consultant when the organization requires the services of a Certified Human Resources Professional. For example, CHRP consultants may be hired when new employee policies are required or if a search for new staff members is necessary.

In order to raise the standards of the CHRP profession, starting in January of 2011 all CHRP candidates will have to hold college or undegraduate degrees. If you already hold a degree, becoming a CHRP can help you obtain specialized training while continuing to leverage your undergraduate education.

Become a CHRP consultant

In Canada, the CHRP designation is overseen by the Canadian Council of Human Resources Assocation (CCHRA), but the actual CHRP designation is granted by Provincial or Territorial HR associations.

Follow these steps to become a CHRP consultant:

1. Remember that as of January of 2011 all CHRP candidates will be required to hold college or undegraduate degrees.

2. Register with your Province or Territory’s HR Association. Make sure that the Association can grant the CHRP designation. Check with the Association to find out whether they have any special prerequisites.

3. Write and pass the National Knowledge Exam. The test consists of 150 multiple-choice questions and a grade of 70% or higher is required to pass. The cost to write the test is approximately $250.

4. Write and pass the National Professional Practice Assessment exam.  The test also consists of 150 multiple-choice questions and a grade of 70% or higher is required to pass. The cost to write the test is approximately $500.

Becoming a CHRP consultant might be the perfect consulting job for you if you love people, have an undegraduate degree, and are looking to become recognized as a specialist with sellable, marketable skills.

Think becoming a CHRP consultant isn’t right for you? Check out this comprehensive list of other types of consultants you can become.

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What are your biggest fears about your business?

Running a business involves some risks. For me, there came a point where the risk of not following my dreams and pursuing my passions was higher than the risk of staying in a regular office job.

Once you start a business, though, you may still have some fears. People have told me they fear:

  • sales
  • flying (making business trips a challenge)
  • public speaking
  • negotiating
  • being put in a position where the client lowballs them
  • and so on.

What are your biggest fears about your business?

Billy Wilder on your inner voice

Director Billy Wilder, the man behind Sunset Blvd and Some Like It Hot once said:

“Trust your own instinct. Your mistakes might as well be your own, instead of someone else’s.”

Still wondering if you should make the leap to starting a consulting business or perhaps to growing your existing business? What is your gut telling you?

Two truths: you can hold both

Do you ever struggle with your desire to build a successful business and the here and now of where your business is today? Perhaps you struggle with a variety of truths:

  • You want very much to work on your own, but you feel a need to have someone guide you
  • You are inspired to grow your business, but you procrastinate and get behind
  • You love running your own show, but you have lonely days
  • You love what you do, but you hate how most of your days look
  • You know you’ll make serious money when your business grows, but you’re not there yet and you’re struggling to pay the bills
  • You love the excitement of new assignments, but you don’t like feast or famine cycles
  • or perhaps you’ve got your own polar truths to add here

Perhaps you feel one or the other must be true. But both can be true. You can hold both of those ideas.

The solution is finding a way to address both ideas. If one idea is really affecting your today, then look at how to solve it. It’s okay to take steps to make positive changes.

You can hold two truths.

Maybe you need to get a part-time job. Or a full-time job. Or join a networking group. Or get a mentor. Or do more social stuff. Or write a new business plan. Or draft a new marketing plan. Or build up an emergency fund.

In fact, as I write in How to make the leap to full-time consulting, you can take small steps. You needn’t jump to one polar view or take a black and white approach. You CAN build a successful business while having fears, uncertainties, hesitations, financial woes and more. You just need to honour those points and look to address them.

Your feelings matter. And they need not be one way or the other. You can hold multiple feelings and still be "right" and "successful".

Marie Curie on your career

Famed physicist and Nobel Prize winner Marie Curie pioneered research in radium, polonium and radioactivity. But she once shared some wisdom that may inspire you as you go about managing your life, career and business:

“Life is not easy for any of us. But what of that? We must have perseverance and above all confidence in ourselves. We must believe that we are gifted for something, and that this thing, at whatever cost, must be attained.”

Marie Curie began her undergraduate work in Warsaw at a time when women were not permitted to attend university. Fearing the repercussions of the czarist regime, she studied at a "floating university" that changed location nightly. She eventually went on to be the first woman in France to get a PhD, the first female prof at the Sorbonne and the first woman to win the Nobel Prize. That’s passion. That’s values-driven.

What drives you in your work and life?

Get a contract and deposit before you start work

Egads, how many times have I heard stories where there’s a consultant or freelancer who’s struggling with invoicing on a project — and hasn’t got a contract or deposit? In fact, usually, when I hear someone has run into payment troubles, it’s usually when there’s no written contract or deposit.

If you’re doing work without a written contract or a deposit, stop that! Stop that right now!

Start treating your business like a business. Sure, verbal contracts are enforceable in many places. But that doesn’t make it easy to enforce a verbal contract. Moreover, if you haven’t got stuff written down, how will you remember the expectations and conditions later, especially when it’s time to get paid? Get a contract in place!

And, wherever possible, get a deposit. Deposits provide a huge number of advantages. And clients may take you more seriously if you ask for money up front.

These are just suggestions, of course. Talk to a lawyer if you want legal advice. Talk to an accountant for financial advice. But, from the hard-won experience of this consultant, you should really get contracts and deposits in place before starting any project.

Making big plans

Making big plans is easy to forget about when juggling the day to day responsibilities of your own consulting business. But big plans and an overall goal and vision are crucial in making every day decisions. Remember that all your little decisions become your life and your business.  Many people don’t take the time to think that it’s the little decisions that shape who we are and how our businesses grow.

No matter what type of consultant you are, you’ve got to have a big plan. Who are your ideal clients? What direction do you want to go in? What are your financial targets? Where would you like your consulting fee rate to be in two years?

In order to set goals, you don’t need to create a 30-page document outlining every parameter; you just need some tangible targets. If you need help setting concrete goals, try the SMART system for setting goals.

Once you’ve got your goals in mind, the next step is to determine how you’re going to achieve them. And then stay true to your goals. Stay on track by measuring your everyday decisions against your goals. The small decisions that we make every day are what can either lead us toward–or away–from our goals.

Reevaluate your goals as needed. We all alter our goals as parameters change or as goals are achieved. When you do achieve a goal, be sure to make time to celebrate and recognize how far you’ve come. Then make another big plan!

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The core of relationships

There’s no denying that businesses are built on relationships. And the core of relationships is trust. In essence, trust is an understanding that both parties can rely on one another to achieve a shared goal. There is no relationship without trust, and successful business can’t exist without relationships.

How to establish credibility in the business world

Trust isn’t built between you and your client overnight, but you can take steps to get a jumpstart on credibility. Make it easier for your client to trust in you and your business:

How to build trust in the business world

Once a prospect becomes your client, it’s integral to continue building trust. Here are some key ways to continue building trust in business relationships:

  • Always make business decisions with trust in mind.
  • Never make promises that you can’t keep.
  • Understand your client’s objectives and recommend the best options (even if the options aren’t in your company’s best interest).
  • Stand by your promises.
  • Communicate openly.
  • Admit your mistakes.
  • Share information about yourself and your company.
  • Listen.
  • Be consistent.

When working with clients, always remember that relationships are key and that trust is the the core of relationships. If you do this, you’ll be sure to keep your clients happy, which will lead to word of mouth referrals. This is the business relationship circle of trust.

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Business relationships are still relationships

Business relationships are still relationships, no matter which way you look at them. In order to be successful in business you’ll need to foster strong relationships with clients, vendors, buyers, staff, or distributors. It’s not surprising, then, that business relationships require much consideration, including client generation and customer relationship management  strategies.

But many business owners make the mistake of treating business relationships markedly different than personal relationships. Are business relationships really that different from friendships? No, they’re not.

Most consultants strive toward turning one-off clients into lasting client relationships. When this happens, you’ll get to know more and more about your client’s business and personal life, and vice versa. This can strengthen the bond between you and your client, increase customer loyalty and it can make for a more satisfying, efficient and productive business relationship.

Trust is integral to business relationships. Without trust, there is no relationship. Respect for the nature of the relationship is equally important. Over time the lines between business and personal relationships can become blurry as your relationship develops. If both parties trust one another and respect the nature of the relationship, the relationship can blossom into a productive, profitable and pleasurable business experience.

Some new entrepreneurs wonder where to draw the line with how much information to share with their clients. As with friendships, every relationship is different and only you can make that determination. As long as the relationship is based on trust, respect and a mutual understanding about the nature of the relationship, the relationship may take on a life of its one. After all, business relationships are still relationships, no matter which way you look at them.

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Running a values-driven business

Running a values-driven business is a business concept that affects all brands and businesses, whether they are aware of it or not. Consider the companies that you interact with on a weekly basis: your grocery store, a new car dealer, an independent clothing store or the local big box store.What are their values? Do they stand for affordability, quality and service or client satisfaction? Or perhaps they just care about making the sale? 

As an entrepreneur, have you considered that you are running a values-driven business? What would your clients say if asked what you stand for?

An example of values-driven thinking

Some consultants operate values-driven businesses unconsciously. Perhaps you are a bootstrapping entrepreneur who recognizes the value of word of mouth referrals. You are committed to client satisfaction and may even go above and beyond to keep a new client happy. Without necessarily sitting down and scratching out the details of your business values, you’re running a values-driven business without even thinking about it.

Conversely, another entrepreneur may be solely budget-driven. He may leave clients in the lurch and leave a trail of disappointed customers in his wake. He is running a values-driven business too, based strictly on volume and sales. The results could be devastating to his business.

What are your business values?

As with most strategies in the business world, it’s best to start with a plan. Don’t just fall into your values. Consider which values are important to you, and build your business around them. Here are a few ideas to help you consider your business values:

  • Commitment to customer trust
  • Ethical business practices
  • Green business practices
  • Customer satisfaction
  • Affordability
  • Continuous improvement
  • Authenticity
  • Follow-through
  • Relationship building

What do you want your business to stand for?

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Your client may be right

Have you ever got into a situation where you’re convinced your client has to listen to you? 

Where you know you’re the expert? Where your experience, your years in the trench, your training, your education and your methodology — and maybe even your gut — tell you what the client needs in this situation?

Stop for a moment.

Think of your client. It’s your client’s business. Your client’s market. Your client’s experience. Your client’s history, training, education and methodology telling them to disagree with you.

And maybe your client is right.

In fact, your client is right. They know their business better than anyone else.

So reposition. Reframe. Find out the sticking points. What’s holding your client back from accepting your opinion, your expertise?

Look for a way to bridge the differences. Let your client own this solution. Because, if they don’t believe in you, they’re never going to trust that your solution is right. And it will just be sitting on a shelf.

In the end, it’s not about being right. It’s about building a bridge to help the client cross over to a world where they don’t feel the pain of their current challenges. So be part of the solution.

Happy New Year – what are your resolutions?

Wow, 2010. When I was a kid, this was the future. It was past the timeline of 2001, the movie. It was 10 years into the millenium. And now it’s just…today.

Still…2010. I’m a little behind — that’s been my story since the fall — but I’m thinking about New Year’s resolutions. I want them to be in line with my values.

In 2007, I promised to blog naked. (It got attention, but I meant I’d be blogging more openly and honestly.) In 2008, I aimed for efficiency in work and to earn more per hour — good on those two points, but I’m not sure how well I did with my work scheduling. And, in January 2009, I launched the Become a Consultant course.

This year? Well, I want to be more organized this year. I want to grow my business more. But, having sought to grow my business this past year, I’m waaaaay behind. I haven’t sent out a Consultant Journal newsletter in a few months. That’s high priority for January.

Still, I need to take some time to organize my thoughts around what I want to do in 2010.

How about you? What’s on the agenda?

Knowing your values

Do you think about your values when it comes to your business? I recently met with another business owner who wasn’t feeling motivated or inspired. This entrepreneur said they just didn’t want to get up and do their work every day.

In talking to them, I discovered that this individual felt disconnected from the umbrella company they work with. Through discussion, I learned that the company’s mission, values, brand and strategy were out of alignment with this consultant’s values.

I get that. I’ve been there.

When I rebranded my marketing consulting company this year, I thought a lot about my values. What stood out for me most is that I like to "live my values". I like to think that the way I approach every action is driven by my core values. And what’s been really important to me — throughout my life, but especially now — is authenticity, trust, commitment, follow-through, respect and fantastic relationships. I decided to take those values and have them drive my business processes. I mapped out new ways of building marketing programs, so that I pay attention to each of those values. And I’m focusing on clients who really care about those values. I renamed my company Trustmode Marketing.

I’ve never been so happy about my work. And business is booming for me. By focusing on what I believe in and seeking out clients who share that vision, I’ve been able to create the change I wanted — in my life and in my business.

How do your values fit into your business?

 

Become an image consultant

Becoming an image consultant is an exciting career aspiration for many, and this dream can become a reality. If you are confident, driven, tactful and have a desire to help others, you may want to seriously consider becoming an image consultant.

Image consultants offer comprehensive guidance to their clients in terms of how to improve their image. Guidance can cover fashion, etiquette, voice coaching and many other subtle but integral pieces that make up one’s image.

In order to become an image consultant, It is not necessary to become certified; however, you may want to become certified to increase your perceived professionalism and to gain increased knowledge. There are numerous image consultant certifications available online. However, make sure to do your research to ensure that you’re getting certified by a knowledgeable and reputable organization. Start by contacting the Association of Image Consultants, who can offer guidance regarding which image certification courses are the most reputable and offer the most practical and usable training.

Becoming an image consultant or image professional can be a very rewarding experience, both financially and personally. Image consultants are one of the few people who are invited to help others improve their look. These improvements can lead to new relationships, promotions, and complete life changes. 

Once you decide to become an image consultant, you’ll want to know how much image consultants charge. Rates can vary greatly. If you’re considering becoming a consultant, you may want to read my eye-opening guide, Consulting Fees: A Guide for Independent Consultants.

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Become a business consultant

Become a business consultant and discover what it’s like to be your own manager and set your own rates.

Business consulting can take many forms, and there are many specializations within the industry. However, at their core, business consultants help identify and solve problems. Business consultants can work with corporations or entrepreneurs.

When considering whether to become a business consultant, many entrepreneurs wonder whether they will require any certifications or accreditations. The answer can depend on which area of business consulting you decide to work in. I have touched on certifications with reference to financial, tax, and HR consultants.

Some people are surprised to learn that it costs very little to become a business consultant. The trick is to set aside some savings and follow the steps to becoming a consultant.

If you could benefit from additional guidance on whether to become a business consultant or if you’ve already decided to start a business consultancy and need assistance making the right choices consider registering for the online course, Become a Consultant: How to Make the Leap.

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Being a consultant

Thinking of becoming a consultant? Let our concise guide start you on our way – then turn to our library of article for in-depth support.

Become an HR consultant

Become an HR consultant and take control of your career. HR (human resources) consultants across Canada and the US are benefiting from flexible schedules and other benefits of consulting.

HR consulting is an exciting choice for entry-level consultants. While some business consulting areas, such as tax consulting,  require substantial background and prior knowledge, HR consulting can require less prior experience for the right candidate. Remember that to be a consultant you don’t have to be an expert. Sometimes consultants take the burden off their clients by solving their clients’ problems.

That being said, in order to become an HR consultant who is in-demand and confident in his or her work, training is beneficial. There are numerous courses and accreditations available to HR consultants, and anyone who’d like to become an HR consultant should investigate the available opportunities both locally and online. For example, in Canada, certified human resource professionals (CHRP) must meet requirements, pass two national exams and sign a code of ethics. Skilled HR consultants are proficient in issues related to professional practice, organizational effectiveness, staffing, employee and labour relations, compensation, training and development, and occupational health and wellness."

Skilled HR consultants are proficient in issues related to professional practice, organizational effectiveness, staffing, employee and labour relations, compensation, training and development, and occupational health and wellness. 

Most HR consultants have a passion for people and enjoy networking and one-on-one contact. Are you considering whether to become an HR consultant? If you are considering this career change, I would encourage you to perform a personal inventory of your interests, skills and values.

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Become an environmental consultant

Become an environmental consultant and combine your passion for the environment with the personal and financial freedom of consulting. Also known colloquially as "green" consulting, becoming an environmental consultant is a new consulting field that is gaining ground.

Environmental consulting is a diverse and growing industry. According to a 2008 article by IBISworld,  the environmental consulting industry expected growth in the vicinity of 9.7 percent during that year.

This growth comes as a result of growing public concern for the environment. Governments and corporations are equally concerned with being perceived as being considerate to the environment–or at least in compliance with environmental regulations.

Green consulting is diverse and there are a number of sub-niches within environmental consulting:

  • A professional with a scientific or technical background may become an environmental consultant that specializes in geotechnical reports and works directly in the field.
  • A professional with a communications or social science background may become an environmental consultant that specializes in research or public education.
  • A professional with a construction, planning, or architectural background may focus on green building initiatives and become familiar with the the LEED (Leadership in Energy and Environmental Design) system, which is a "green" building code.

To determine whether you should become an environmental consultant, consider your background, experience, and your personal inventory of interests, values, and inspirations.

For tangible tips on how to become an environmental consultant, check out my series of articles and FAQs on how to become a consultant.

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Advice from Bill Cosby

I disagree with this, but this still made me laugh out loud:

"A word to the wise ain’t necessary – it’s the stupid ones that need the advice. "

- Bill Cosby

The wise, of course, are already looking for and following good advice!

Henry Ford failed

"Failure is simply the opportunity to begin again, this time more intelligently."

- Henry Ford

Known today as a business magnate, philanthropist and social entrepreneur, Henry Ford actually failed several times:

  • He burned through all the money from his first group of investors without producing a car
  • He eventually produced a car and raised another $60,000 in share capital, but his Detroit Auto Company went bankrupt
  • In the 1920s, Henry Ford refused to update the Model T car, leading sales to fall dramatically
  • Ford tried to launch a political career, but never succeeded

Yet Ford played a tremendous role in shaping car engineering, assembly line production, business, pacificism, social leadership in business, education and other areas.

But rather than viewing failure as doom, Ford saw it as an indication that improvement was needed. Perhaps that’s how he seized on the opportunity to refine Model T manufacturing, reducing assembly time from 14 hours to about 90 minutes.

How do you view your failures?

Become a financial consultant

Become a financial consultant if you have a financial background and are interested in the benefits of being a consultant.

In the simplest terms, financial consultants offer advice about financial matters. Most financial consultants have a background in economics and experience working with banks, trust companies, mortgage companies, brokerage firms, mutual funds, or other financial management organizations.

There are many possible specializations to consider if you decide to become a financial consultant:

  • accounting;
  • insurance;
  • finance law;
  • comprehensive financial planning;
  • retirement planning;
  • pension analysis;
  • bankruptcies;
  • risk management;
  • debt management;
  • investment management;
  • will and estate planning; and
  • cash management.

Depending on specialization, a financial consultant’s clients may include individuals, families, corporations, trusts, and privately owned firms. When some financial professionals become consultants they specialize in a client group, such as female or retired clients.

Many financial consultants are accredited or hold membership in relevant organizations, such as being registered financial planners (RFPs), certified financial planner licensees (CFPs), and certified financial consultants (CFCs).

Financial consulting can be a lucrative career. Find out more about how to set consulting fees here.

The steps involved in becoming a financial consultant are similar to what is involved in starting most business consultancies. For help starting a financial consulting business, check out this series on how to become a consultant.

There are many types of business consultants, and becoming a financial consultant is just one option. If you’d like to learn more about your unique skills and are wondering whether to become a financial consultant, consider taking the course Discover Your Inner Consultant.

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Become a tax consultant

Become a tax consultant and see your career in a whole new light. One of the many benefits of consulting is the ability to control your schedule and reap your own rewards. Becoming a tax consultant may be just the consulting career you are looking for.

Tax accountants can range from unaccredited consultants who prepare simple tax returns to in-demand CGAs or CPAs.

Many tax consultants specify in one area, such as tax compliance, corporate tax issues, estate planning, real estate, in-bound international tax or out-bound international tax.  

Tax consulting is a field with rigid and complex regulations. In addition, tax consulting is a field that requires a substantial amount of knowledge and training. Whether to become a tax consultant will depend on your own background. If you will require a substantial amount of training or education, it may be worth it to consider becoming another type of consultant.

If you do have the background but are wondering how to branch out on your own or how to set your consulting fee rates, consider taking my online course or purchasing one of my books.

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Apply for a line of credit

Apply for a line of credit before you need it. It can take some time to apply and get a line of credit; if you’re considering doing so, apply for a line of credit now, especially if you’re considering starting a new business.

A line of credit is a predetermined amount of money that a banking institution sets aside for your use. For example, you may apply for a line of credit from a bank, which grants you a $5000 line of credit. You will gain access to this $5000, but, much like a credit card, you are only charged interest on the amount you use.

All lines of credit are not equal. Much like everything else in the financial world, rates can vary greatly. While it’s a good idea to start with your own banking institution, do research. Before signing on with a lender, contact a number of banks and lending agencies; compare rates and terms.

Lines of credit are generally preferable to credit cards because line of credit interest rates are usually lower than credit card interest rates.

When you apply for a line of credit, you may need:

  • The reason why you want to apply for a line of credit;
  • A list of your assets and liabilities;
  • A letter from your employer, stating how long you’ve been employed and the terms of your employment; and
  • Other personal details.

The lender will also do a credit check on you. If you are interested in applying for a business line of credit, read this article.

Applying for credit can be a wise decision when managed responsibly. In fact, one of the top reasons that small businesses fail is a lack of cash flow to get them through lulls in the market or times of redevelopment. Apply for a line of credit today.

Remember, ConsultantJournal.com and its contributors only provide general information, not advice. Talk to a financial advisor, accountant and lawyer if you need business advice.

Related posts:

Are you friends with your clients and vendors?

I’m a people person. I like people. And I like talking. I don’t like being fake, though, so I tend to be straight up with people. As a result, I find that I connect with a lot of people. Because I run a business, this means that some of my clients and vendors have become close friends over the years. In turn, many of my friends seek me out as a supplier.

I grew up in a small town and so it seems completely normal to have such blurry boundaries in my life. In a community, people do business with people they trust. If you trust someone, it makes sense that you might sometimes see a friendship emerge. And, if you have friends who need business services, you may sometimes find yourself in a business relationship with those friends. Sure, it makes for some complicated dealings, but it means that there’s some authenticity to the business relationships you have. Why would you treat your clients and vendors any differently than the other people in your life? Trust is at the core of any relationship, whether it’s business or personal.

Are you friends with your clients or vendors?

Start thinking about holiday cards

Even though the holidays are still some time away, it’s never too early to start planning. Holiday cards or Christmas cards can form an important part of your marketing plans. That’s because holiday cards offer you the chance to build on your relationships with customers, prospects, vendors and other contacts. To avoid disappointment, though, you should start thinking about ordering and organizing your holiday card plans now.

Check out our past posts on holiday cards:

You might also be interested in Christmas jobs.

 

 

 

Get a better credit rating

Get a better credit rating today. Ensuring that your financial house is in order positively affects your personal and business life. So follow these simple steps and get a better credit rating now.

1. Get to know your credit rating

Getting a better credit rating starts with becoming familiar with your own credit score. Keep tabs on your credit rating. Request free credit reports annually. Doing so makes you a more informed applicant. It also helps you keep track of changes to your credit over time.

Check your credit report in detail. There are a surprising number of mistakes and outdated information on credit reports. If you encounter an error, contact the lender involved and ask them to notify the credit bureau with the correction.

2. Pay your bills on time

Paying on time is crucial to good credit. Your payment history shows that you have a reliable financial history (or, alternatively, your history can show that you’ve been over-extended or disorganized). Even small infractions such as a late credit card payment can make it difficult to get a better credit rating.

Above all, from now on, pay all your bills on time.

If you are in a cash crunch making payments can be difficult. If you are having financial difficulty, contact each lender as soon as possible. Let them know that you are having trouble, and try to negotiate more favourable terms or lower the payment.

3. Show credit responsibility but reduce unnecessary credit

Having a few credit cards that are paid off every month actually helps your credit. Make sure that you have at least one or two credit cards that are paid off on time every month. This shows lenders that you keep track of and keep on top of your finances. However, don’t go overboard. Too much credit can be detrimental to your credit rating, even if the balances are paid off.

Your available credit is calculated by the credit bureaus to determine how much credit you have access to. For example, if you have a credit card with a $5000 limit and the balance is at zero, the credit bureau will still see you as having access to that $5000.

Balance is key. Show responsibility but reduce unnecessary credit.

4. Limit the number of hits on your credit

Every time a lender requests your credit report this "hit" is registered on your credit report. For this reason, in Canada lenders must always ask for your authorization before performing a credit check. The more hits showing that lenders were inquiring about credit can be a red flag to the credit bureau.

To get better credit don’t allow any more hits to your credit than are absolutely necessary.

5. Pay down debt by reducing spending or increasing earnings

If you want to get a better credit rating, chances are you could benefit from reducing your expenses or earning more money.

Many people get second jobs or become consultants to reduce their debts. Doing so will allow you to pay down more debt and get a better credit rating. When paying down debt, pay your highest interest loans first but continue making minimum payments on your other responsibilities.

If you’d like to know more about how to become a consultant and reduce your debts, consider the How to Become a Consultant course.

Related posts:

 

Negotiating credit card rates

Negotiating credit card rates is something that many consultants neglect to consider. However, it is possible to negotiate credit card rates and get your rate lowered.

Your chances of successfully negotiating a better credit card rate increase if you’ve been a loyal customer and you have an above-average credit rating.

When negotiating credit card rates, do your homework before you call to negotiate a rate reduction:

  • Know your current credit card rate;
  • Know the rate you could secure if you went with a competitor;
  • Know how long you’ve been a customer; and
  • Know your credit rating.

When calling, use your leverage. Let the company know that you’re considering canceling the card and going with a competitor. Mention that you are pleased with your current company and you wish they could match or exceed the competitor’s rate.

Depending on the bank or customer service agent, you may get turned down. If this happens, ask to speak to a supervisor. The supervisor may also respond negatively. Every bank has different policies and procedures when it comes to flexible interest rates.

If, as a result of your negotiation, you are offered a different card, be sure to read the fine print. Many cards offer an initial low interest rate, but the interest rate spikes after the initial teaser period ends.

There is no guarantee that attempting to secure a better rate by calling and requesting a lower rate will be successful. However, negotiating credit card rates is certainly worth investigating.

If you’re operating on credit, it may be wise to consider other options in addition to credit cards.

As a consultant, you run a business. Don’t hesitate to look into business loan and funding opportunities. Contact your local Chamber of Commerce or business institution to find out more about business loans and grants in your area. In Canada, try contacting the Business Development Bank of Canada for loans or Canada Business for grants or subsidies. In the USA, contact the U.S. Small Business Administration for assistance.

Related posts:

Becoming a management consultant

Becoming a management consultant is just one of many types of consulting opportunities.

Management consultants help organizations improve their performance. Management consultants are often hired on a per-project basis to identify problems and propose solutions. Corporations and governments seek the advice of an external management consultant because an objective outside opinion is often preferred.

It is possible to become a certified management consultant (CMC). Certifications are based on standards set by the International Council of Management Consultant Institutes (ICMCI).

Becoming a management consultant may be an appropriate career choice for you if you are aware of industry best practices and have experience in managerial roles.

However, there are many types of business consultants, and becoming a management consultant is just one of the many options. If you’re not sure whether management consulting is the business consulting niche for you, consider taking the course, Discover Your Inner Consultant.

The steps involved in becoming a management consultant are similar to the steps involved in starting most business consultancies. For help starting a management consulting business, check out this series on how to become a consultant.

Related posts:

 

Working on retainer

Working on retainer is a popular way of setting consulting fees. When you’re working on retainer, you’re dealing with a contract that requires your client to pay you a flat rate for a certain amount of time. In turn, you keep that amount of time available for the client, so that they don’t have to worry about you being unavailable for projects.

Some people set their retainers by the hour or day. Others work with retainers that promise certain deliverables. For example, a freelance writer might be paid a retainer of $1,000 per month, in exchange for writing four articles — with additional articles available at $250 per month.

With a retainer, the client has the comfort of knowing that the consultant or freelancer will prioritize their work. There’s a promise that the consultant or freelancer will be available for a specific amount of time on a regular basis.

Retainers usually involve a bit of a discount and prepayment. This gives the client a better rate — but also helps the consultant with managing feast or famine cycles of cash flow.

Do you work on retainer?

 

Health insurance for the self employed

Consider these 8 tips for choosing health insurance when you’re self employed.

Wow, September got away from me

I’ve been a bit silent on the blog this month. I took on a couple of big contracts in August, then suffered a setback when I aggravated some injuries…and now I’m in the process of playing catch up.

The good news is that I’m loving the work I’m doing. And I’m working on some exciting projects — health care publicity for one client and a launch for a software company in stealth mode.

What are you up to?

It’s 9-9-9

Forgive me, but I just noticed that it’s 9-9-9: September 9, 2009. I don’t have anything profound to say about that. I just thought it was really cool. Of course, next year, we’ll have something similar in October. But I suppose the fun all ends in 2013.

Back to school

Around here, it’s back to school time. In Canada, we have a stat holiday called Labour Day on the first Monday in September. Here in Vancouver, school usually starts the next day. Of course, some local school districts started a couple of weeks ago, so that they can close up during the Olympics this February.

It’s never too late to go back to school. And so we’ve reduced the price on our Become a Consultant course. Whether you’re already up and running or just starting to think about consulting, this course can help you find your way on the path to becoming a consultant. It includes a review of your marketing plan — Consultant Journal founder Andrea Coutu is a veteran marketing consultant.

What do you have planned as part of your lifelong learning this fall?

Can you befriend competitors?

When you hear the word "competitor", do you get all warm and fuzzy inside? I didn’t think so. In business and in life, our competitors are the people who contest with us for resources. Most of us have been taught to see competitors as "bad guys".

You don’t have to see all your competitors as bad guys, though. Over the years, my "competitors" have been a help to me:

  • They have graciously accepted my overflow
  • They have taken on clients who were not a fit for me
  • They have hired me to do work for them
  • They have invited me to take part in joint ventures
  • They have collabored with me on projects
  • They have accepted leads from my business when my personal circumstances (such as a whiplash injury) otherwise left my leads flapping in the wind
  • They have mentioned my company — and linked to my website — on blogs, Facebook, Twitter and other social media sites

Really, though, I don’t think of most of those "competitors" as "competitors". I think of them as "peers". They’re my company’s professional rivals — heck, they’re my professional rivals. They’re the businesses that push my company to work harder, faster, smarter, better. They’re the people and businesses who make my industry great.

The bad guys? Those are the people who try to cheat customers. But even those companies aren’t my competitors — because I’m not competing on offer with the kinds of companies that are set up to rip people off.

Of course, that doesn’t mean I ignore my competitors or that I tell them my business secrets. I’m a professional rival, but I’m not stupid!

How do you feel about your competitors?

New lower price – Become a Consultant Course

We’re celebrating "Back to School" season with a new lower price on our successful Become a Consultant program. Now just $195 US, this course combines the Become a Consultant workbook with exercises, 2.5 hours of audio, discussion forums, two of our most popular guides (Discover Your Inner Consultant and Consulting Fees: A Guide for Independent Consultants), and more.

If you’ve been toying with signing up for the course, you can’t beat this pricing. In fact, it includes a FREE review of your marketing plan by Andrea Coutu, founder of Consultant Journal and owner of Trustmode Marketing.

Go back to school with Consultant Journal — kickstart your consulting business with Become a Consultant.

Become a Consultant course

What is business?

What is business? It’s a question I asked when I was about 16 or 17. I lived in a small town where most people had jobs in the natural resources, government, health care, education or retail. "Just what is business?" I asked my parents, upon seeing it listed as a potential major in the university catalogue. No one I asked could really explain. And so I majored in English, a subject I knew and understood.

For many people, "business" sounds intimidating. (For what it’s worth, business just really means commerce and trade.) If you’re a freelance or consultant, you may feel a bit shy about saying you own a "business". But, really, if you can separate your business from yourself, you may find you’re in a better situation. It’s much easier to make decisions about a business than about yourself. For example, for the first several years I was a consultant, I ran things under my own name. At the time, I  felt that it was my credibility I was putting on the line and that I was what people were buying. And, really, using my own name gave me a lot of mileage in terms of building my reputation and leveraging my contacts. Eventually, I gave my business a name, but that was more to create some personal distance between me and the business. I rarely told anyone about the business name. In mid-2009, I completely rebranded, creating Vancouver marketing consultant company Trustmode Marketing. The new brand and business help to put firm lines around myself and my business.

Really, as a consultant, if you’re only selling yourself, you’re not in a great position to leverage your investment in your business. That’s because, if you remove yourself from the business, there’s nothing left to sell. So an accident, illness, life change, retirement, vacation or similar situation can have a very real and negative impact on your business. And it’s hard to subcontract and involve other people if your business is simply you.

How comfortable are you calling what you do "a business"? Do you avoid the term or embrace it? How have you chosen to brand your business?

Mary Kastle releases new music video

A couple of years ago, we profiled musician Mary Kastle, as part of showing how our Discover Your Inner Consultant workbook can open your mind to careers you might not have considered "business" or "consulting". Mary Kastle is a Vancouver-based singer, songwriter and musician — and small business owner.

I’m thrilled to announce that she’s just released a new music video.

What’s new with your business? Let us know — we’re happy to share your news with readers.

Small business loan rates

Small business loan rates vary from institution to institution. If you’re in the market for a small business loan, rates should be of high importance. Shop around and investigate what various lenders have on offer. Ask if there are any ways to improve your rate, such as providing collateral, having someone co-sign, or agreeing to have the lender review certain aspects of your business.

Be sure to check with local government programs. In some areas, small business programs help entrepreneurs secure loans at special rates, when regular lenders might not even lend money. Of course, you’ll have to meet conditions, which might even include paying for business coaching. Look around and see what the best options are for your business — and your life.

Related:

How to turn one-off jobs into lasting client relationships

How to turn one-off jobs into lasting client relationships is easier than you think. Turning one-off jobs into lasting relationships is, well, all about relationships.

You’ve probably heard that it’s easier to turn an existing customer into a repeat customer than it is to convert someone who has never bought from you before. Although true, many consultants focus their marketing and networking efforts on new contacts and they forget about their best source of new work–their previous clients.

Self-employed consultant resources

Self-employed consultant resources are what we’re all about here at Consultant Journal.

It’s about time to focus on the self-employment consultant resources that we offer here at Consultant Journal.

Justifying high rates

If you follow the media, you’ll sometimes see criticism of the "enormous" amounts spent on consulting fees. The media will gripe about people being paid $150 an hour, $1200 a day or even $30,000 for a month’s work. They act as though these fees are just some sort of patronage payback. Of course, they might be right about the patronage. Politicians do like to pay back their supporters. However, the media are really making a mountain out of a mole hill.

That’s because consulting fees are really about the value the client receives. It doesn’t matter if you’re paying $5,000 an hour as long as you’re receiving something worth that much. And if you don’t have the in-house resources to do it well, quickly or at all, then you’re better off hiring a consultant.

For example, I recently struggled with developing a brochure to promote some workshops I’m putting on. I must have spent 10 hours struggling with the thing. Sure, at some point in my career, when I was making $15 an hour, this would have made sense. But now I realize that I would have been better off to get a designer to do it for $150, so that I could avoid the headache and do other value-added stuff for my business…like developing the workshops, which I can’t really outsource. In the end, I asked a designer friend to come to my aid anyway. So I should have just spent the money in the beginning.

And that’s why it makes sense to pay megabucks for expert advice. It may save you money and help you do other value-added activities that make you money.

I’ve rebranded my consulting company

After more than 12 years as a marketing consultant, I’ve made the decision to rebrand my company. Today, I’m pleased to announce the launch of Trustmode Marketing, my Vancouver marketing consultant business.

Rebranding was a big decision for me. In fact, the decision and the follow-through showed me just how valuable it is for my clients to have an outsider’s view as they go through their marketing decisions. In rebranding on my own, I haven’t had the benefit of that distance, since I’m the one doing all the thinking and the work. Fortunately, I’ve been able to work with some trusted advisors, including designer Odette Hidalgo of Gravity Inc. And I can’t thank my unofficial board of directors enough for all their help in the past few months. My entrepreneurs’ group has also been a big help.

With the launch of Trustmode Marketing, I’m productizing my services to make them easier for smaller businesses to buy. I’m also putting a focus on principled marketing — I encourage you to visit Trustmode Marketing, my Vancouver marketing consulting company website, for a copy of The Business Case for Marketing Based on Trust.

The new brand also paints a more accurate picture of where my business is today. My corporate structure includes a team of consultants, including writers, designers, web developers, search engine marketers and other great folks. It no longer makes sense to brand everything under my own name.

I’ll be sharing more details of my rebrand in the next Consultant Journal newsletter. (Sign up at the above right.) But I hope some of you will also jump on board for my marketing newsletter from Trustmode Marketing. And I also wanted to let you all know that I’ve launched a marketing workshop for September. If you’re looking for a reason to come up to Vancouver, I can make no greater plea! In fact, if you come to Vancouver just for the workshop, let me know and I’ll see if we can grab a coffee together too.

Thanks for listening. As you can see, running a consulting business is a journey, even for someone with 12 years of experience in the consulting field.

Cheers,

Andrea Coutu

Consulting jobs

Consulting jobs are enticing for a variety of reasons. Check out the big list of reasons why consulting jobs are rewarding: work from home, set your own hours, benefit from tax write-offs, set your own fees… The list of benefits goes on.

But once you’ve decided you want to become a consultant, how do you choose which one of the many consulting jobs are for you?

Why you never want to compete on price

Setting consulting fees can be tough to navigate when you’re becoming a consultant. There are so many parameters to consider–far more than just what others are charging.

Here are six reasons why you never want to compete on price:

Average consulting fee

Average consulting fees can range anywhere from thirty dollars to thousands of dollars per hour. Understandably, most people who are interested in becoming a consultant want to discover average consulting fee statistics.

However, in order for average consulting fee data to be useful, it’s important to get specific and compare yourself to others in your industry.

Consulting fee survey

Consulting fee surveys are a valuable tool worth reviewing. Not only is it natural to want to know how you compare against others in your industry, but considering your competitors’ rates is also an important part of setting your consulting fee rates.

When considering setting consulting fee rates, consulting fee surveys are worth looking into. However, they are not blueprints for what to charge as a consultant.

Computer consulting fee

Computer consulting fees, like all consulting fees, are affected by a number of factors.

Because most consultants agree that there is no standard consulting fee that works in all situations, many new computer consultants have difficulty figuring out what they’re “worth.”

Crunching the numbers

There are six primary consulting fee models, which include setting consulting rates based on performance, and doubling or even tripling your hourly wage. Some IT consultants combine a number of these models at the same time.

When determining your computer consulting fee you’ll realize that determining your IT consulting fee is just as much about building value as it is about crunching numbers.

What are your favourite consulting resources?

As consultants, we all have favourite sources for helping us with professional growth. In today’s post, we’re opening up the floor for you, so that you can share your favourite professional resources. And, hey, we understand that Consultant Journal may not be your only resource. We’ve got good self esteem. We can handle that.

How to be like Coca-Cola

Bruno Coelho sent in a post called Be like Coca-Cola. The article shows you how you can benefit from Coca-Cola’s history — how to go from being great to being seen as great and changing the world.

Here’s a brief intro to the article from Bruno:

“You can’t climb the ladder of success with the dress of failure” – Zig Ziglar

How many times did you feel like everyone didn’t understand how great you are?

You have the skills, the know-how and the will to win… but you’re not making an impact. And if you’re not making an impact… then no one knows who you are.

In the past, a great company also had this issue. It had a great product but it wasn’t making an impact. It’s name? Coca-Cola. It’s impact in history? Legendary.

Let me show you how you can benefit from Coca-Cola’s history, go from being great to be seen as great and change the world!

Bruno Coelho is a Software Engineer with a 360º vision about the software development world. He believes that having strong technical and business skills is critical to stay relevant in today’s competitive business world. He has published and presented both technical and non-technical articles, covering a wide range of subjects: from security to productivity, from performance to marketing and from XML to persuasion.
(Incidentally, if you’re looking to improve your credibility, sign up for the Consultant Journal newsletter and get a free report on how to jumpstart your expert status.)

Standard consulting fee

There are a number of ways to set consulting fees, and charging standard fees (charging what everyone else charges) is merely one of six primary consulting fee models.

Indeed, rather than base your rates exclusively on what other consultants are charging, consider what your services are worth. Do you offer standard services, or do you offer more than the rest? Do you offer something unique?

Understanding standard consulting fees is just part of the process of setting your consulting fee rate.

Ads on this site

As you’ve no doubt noticed, this site uses ads. Advertising helps offset the costs of servers, hosting and administration of the site. But do let us know if you ever see an ad that you think we should review. We welcome ads from great advertisers and we’re keen to take a look at anything you think merits further study. (And, for that matter, if you have a fantastic experience with an advertiser, please let them and us know!)

Happy Canada Day!

Hey, it’s Canada Day and I’m Canadian, so I’m taking the day off. I encourage you to catch up on some posts from the archives. I’ve included a list of quirky posts that use Canadian spellings, like colour:

Why you hate cold calls

Hate cold calls? There’s a reason so many people dislike cold calls.

How to find prospective clients

Life would be a lot easier if clients lined up to buy from you. So why not build a pipeline of potential clients and turn them into raving fans?

How to get testimonials – six tips

Getting testimonials from clients can help build your expert status. Once you figure out how to get testimonials, you can ramp up your credibility. That’s because, when your prospective clients see the words of others who are happy with your services, they’re more likely to believe in what you have to offer.

The one thing you should never do with a check

So you’ve been consulting for a while and a big check rolls in. Ka-ching! You’re set.

But there’s one thing you should never, ever do with a check.

What’s your biggest marketing challenge?

What’s your biggest marketing challenge, as a small business owner? What marketing obstacles frustrate you? Share your thoughts here. Let’s come together as a community to talk through our challenges…and work on them together.

Your best source of new work

Believe it or not, your best source of new work is something you already have. And if you mine this existing resource, you’ll be on the road to success. In fact, most successful consultants turn to this marketing goldmine to keep their busy practices growing.

New site – what do you think?

The new Consultant Journal design is finally up. Please feel free to send along your comments. We’re hoping this new design preserves the grassroots feel of Consultant Journal while giving a more professional face. It also features a more flexible layout for advertisers. And it’s now backed by WordPress, which should improve content management. You should also have an easier time finding our workbooks and guides.

If you have any questions — or if you run into any bugs — please let us know. We welcome feedback.

How commenting on blogs markets your business

Did you know that commenting on blogs is a marketing strategy? Leaving comments on blog posts such as this one is a tool employed by many consultants to drive traffic and attention to their websites.

How does it work?

By leaving useful, engaging comments readers are encouraged to click on your link to find out more about you. And from a search engine optimization perspective, links on other websites that point to your website are a good thing.

Imagine that you’re a copywriting consultant. You come across a post on a professional writer’s blog that discusses the lack of good copywriting these days. You can chime in with some useful, funny commentary that positions you as an expert. For example, you could mention that you’re a professional copywriting consultant and you’re amazed at some of the copy that you’re hired to rewrite. You could share a few funny grammatical mistakes that you’ve caught, and you can sign your name and leave a link to your website.

You’ve just shared a funny story, positioned yourself as an expert and there’s no doubt that a few readers have clicked on your website link to find out more about you.

The key is to leave useful and engaging comments on blogs that are relevant to your niche.

A few tips to remember:

  • Make sure your comments are related to the post;
  • The most effective blog comments are detailed, engaging, humorous, and helpful;
  • Recent blog posts get more readers, in general, than old archived blog posts; and
  • Do not write off-topic and obviously promotional comments.

Related Posts:

When to subcontract – seven signs

When to subcontract - seven signs that it’s time

When you become a consultant, you become more than a consultant. You’re becoming a business owner. That means you wear several hats. As time goes on, it may not make sense to wear every hat. Here’s how to tell when it’s time to outsource.

  1. You don’t like doing the work. If you really dislike a particular task, freeing yourself from the obligation may have a pay off. Taking the weight off your shoulders allows you to focus on areas of strength and passion — which may leave you with more energy to build up your business.
  2. You don’t have time. If you don’t have time to do everything that needs doing, it’s time to enlist help. Of course, before you start outsourcing, you need to consider just what needs to be outsourced.
  3. You could make more money doing something else. By outsourcing lower value tasks to someone who earns less than you do, you can focus on higher paying activities.
  4. You don’t have the skills. Faced with a steep learning curve, you may find it’s easier and more effective to hire someone who can hit the ground running.
  5. You want a fresh perspective. By working with another experienced professional, you can gain insights from unbiased eyes.
  6. You need a break. Sometimes, it makes sense to outsource your work while you take a vacation, a breather or just some time to refocus.
  7. You need to put resources elsewhere. Even if it’s cheaper to do a job yourself, you may need to focus your skills and talents elsewhere. It’s important to figure out just where you add the most value in your business.

Once you’ve started a consulting business and established your fees, it’s important to look at how you add value to other businesses…and then how you can use other consultants and freelancers to add value to your business. After all, the reasons other people hire you are the same reasons you’d hire someone else.

Feel lonely? Here’s help.

As consultants, we often work alone out of our home offices. This can mean hours alone with our thoughts. At times, being a consultant can be a lonely career! But it doesn’t have to be.

Here are seven tips to help you avoid loneliness.

1. Networking

Networking can be fun, even for introverts! Join business and entrepreneurs’ groups. Plan to attend networking functions far in advance, regardless of your busy schedule.

The trick is to make time for networking even when your schedule is tight. Meaningful social interaction is key to battling loneliness.

2. Get out of the house!

Feeling lonely? Take a break. Take a walk. Go to the bookstore, the library or a coffee shop. But don’t bring your laptop or a book. Instead, engage with the people around you. Make eye contact and strike up a conversation. Your need for social interaction will be met, and you never where or when you’ll meet your next big client!

3. Work somewhere social

Take your laptop and headphones with you and head to your favourite coffee shop. Sometimes all it takes is a change of venue to lift your spirits.

4. Collaborate and connect

Connect with other consultants in your field. Invite a peer for lunch, coffee or a walk. You may find that you have a lot in common.

If loneliness is an ongoing problem, perhaps you can explore partnership possibilities that could see you collaborating with your peer on a long-term basis.

5. Take a short-term contract

If you’re missing the social benefits of an office environment, consider accepting a short-term contract that will require you to spend days in the company’s office. 

6. Rent office space

Consider renting shared office space. Investigate whether there are any common workspaces in your city.

7. Stay in touch with friends and family

As passionate entrepreneurs, we can get wrapped up in our business’ success. Sometimes that can mean leaving our friends and family out in the cold. Don’t do it!

Even during your busy season, schedule time with friends and family. Business success is important, but it shouldn’t come at the expense of the people you love. A healthy lifestyle leaves room for both!

Looking for more tips? Check out tips for dealing with home office isolation

 

Related Posts:

Use a blog to build your consulting business

Use a blog to build your consulting business. Sound crazy? It isn’t!

It’s difficult, if not impossible, to accurately determine how many blogs are out there. Suffice it to say there at least a hundred million of them! So am I crazy to suggest that you add to the blog frenzy? Well, perhaps.

But what I do know is that there are five key ways that blogs can build your consulting business, and I’ve experienced these benefits first hand.

1. Build your expert status

When you take the time to blog about your consulting business, you’re showing clients and potential clients that you’re an expert. You’re demonstrating that you know what you’re doing and why you’re doing it.

When you blog about your consulting business, you’re showing your readers that you’re so passionate about your field that you’re brimming with ideas and commentary. Your blog is your platform to impress and share your passion about your business.

2. Increase your search engine results

New, fresh content on your blog or website is what the search engines are after. When you update and add to your blog or website, you’re giving the search engines more new data to index.

When you write about topics and keywords that are relevant to your niche, you increase the likelihood of your potential clients being directed to you by the search engines.

3. Foster a sense of community

Frequent and regularly updated blogs will eventually have a following of readers. When you encourage readers to comment on your blog posts and share their thoughts and opinions, a blogging community takes shape. Readers will feel connected to you and your business in a personal way, which is good for business.

4. Encourage you to stay on top of trends

Writing a blog about your consulting business can serve as a good motivator for you to stay on top of trends. When you’re busy running your business, it can be easy to keep on doing what you have been doing instead of staying on the cutting edge.

Using a blog as an excuse to keep up with trends can be a great motivator.

5. Keep readers, clients and potential clients coming back for more

New, regularly updated content will keep visitors coming back to see what’s new! Static pages just don’t boast that benefit.

Get blogging and use your blog to build your consulting business!

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Should you discount for non-profits?

Should you cut your fees for worthy non-profit associations? One of Consultant Journal’s readers, Walela, recently commented on the consulting fees post:

This is my first consultant opportunity: to consult with a  non-profit that received a grant for a teen mentoring program. Are the fee formulas mentioned on the site applicable to non-profits  as well? I want to be sensitive to their financial situation, but not give away my services either.
 

I don’t agree with discounting rates for non-profits. You’re not a charity – the non-profit is. I suppose I stopped discounting my rates for non-profits when I realized many of them advocate against exploitation, undervaluing of people and so on, but they still pay their employees and contractors poverty-level rates. However, there are times when I can see that a project is especially interesting or worthy, for reasons related to your business or personal values. I see a few ways to look at this:

  • Volunteer. If the opportunity is so good, volunteer without hesitation. Give freely.
  • Quote at your full rate and donate back the amount at which you would have discounted your fees. You can even state this in the proposal. This gets the non-profit to better value the work you provide and it has the same financial result for them.
  • Re-calculate your consulting fees. In the consulting fees model, would your full-time salary at a non-profit be the same as in the business world? It’s worth considering.
  • Charge a fair rate, with consideration for in-kind benefits. See if there’s a way to negotiate benefits for your business, such as having your name printed on materials, being mentioned in press releases, receiving links from their website, getting attention in their newsletter and so on. If you set this up and truly value that exposure, you’re not actually discounting.

I’m sure a few readers will say that I’m being unkind to charities. I’m not. I just question why I should act like a charity when asked to work with a charity. It might be a little different if I truly value and embrace the charity. But I don’t think all charities merit discounts.

 

8 reasons to write guest posts for blogs

Have you considered writing guest posts for other blogs in your niche?

Here are 8 reasons to write guest posts for blogs that don’t belong to you:

1. Build your expert status

Writing a guest post at another blog is a tangible way to increase your expert status. By writing a guest post about your niche, you’re positioning yourself as an expert in the field, and readers will see you as such.

2. Gain backlinks pointing to your website

When writing a guest post for another blog, be sure to include links within your guest blog post that point to your own website, portfolio or blog. This is an effective way to drive more traffic to your site and increase your ranking in the eyes of search engines.

3. Grow online partnerships

When you contact a blog about writing a guest post for them, you’re beginning a dialogue with another person in your niche. These relationships can sometimes grow into lucrative and mutually-beneficial partnerships.

When you’re in the same niche, sometimes there can be worries of competition. But when the cards are played right potential competitors can both grow their businesses by leveraging each others’ skills and resources.

4. Increase your sphere of influence

When you write a guest post for another blog, you’re tapping into blog readers that may not even know about you, your website or your blog.

Guest blogging can be an efficient way to tap into an already existing market and draw those readers over to your blog or website.

5. Free advertising

Free advertising. Need I say more? The more relevant blogs you write for the more readers will come across your name and your business.

6. Fun

If you enjoy reflecting on your successes, guest blogging can be an enjoyable experience that has a high return on investment.

7. Share your knowledge

The most successful guest blog posts share information of perceived value. Guest blog posts can be a useful place to toot your own horn, but readers will respect you even more if you also share valuable, timely information that’s of use to the readers.

Got  insider tips? Share them with the blogosphere, and you’ll be sure to gain credibility, respect and increased expert status.

8. Increase your earnings

What happens when you boost your expert status, take advantage of free marketing, increase your sphere of influence and you partner with others in your niche? Your earnings have nowhere to go but up!

Are you convinced? Why not give it a try?

I’d be happy to welcome you to write a guest post here at Consultant Journal. The first step is to make the leap and get in touch.

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How writing articles can help your business

Writing articles can help your business by jump-starting your expert status, offering free advertising and building backlinks to your website.

The first step is to identify a publication related to your niche that may accept your contribution. There are many magazines, journals, trade publications, websites and blogs that would be glad to publish your article. In fact, I’d be happy to welcome your article here at Consultant Journal; I’d love to hear from you if you’re interested in writing articles for Consultant Journal.

Writing articles helps boost your expert status, which benefits you in two ways–adding to your resume and exposing your expertise to a larger market:

1. Once you are published, be sure to use your full name, your business name and make reference to your article on your website and anywhere else that’s applicable. This boosts your credibility with potential clients.

2. In addition, when you are published, readers who are unfamiliar with you will come across your article, which includes your name, your business name and your website address.

If you’re writing for an online magazine, website or blog, be sure to capitalize on the opportunity by requesting a link back to your website or portfolio. The more links pointing to your website the better. These links drive traffic to your site, and they can be helpful when search engines rank your website against your competitors.

Writing an article may be easier than you think. You know your business inside and out. You’ve got the skills, experience and expertise. So contact a potential publisher–be it on the web or in print–and see whether you can write a short article that boosts your expert status.

Are you a consultant? Why not start by writing here at Consultant Journal?

For more tips on building your expert status, be sure to subscribe (above, on the right) to the newsletter for a free article with tips on how to jump-start your expert status.

Or if you’re looking for a step-by-step guide explaining how to run your own consulting firm and how to build your expert status, consider taking my course, Become a Consultant – How to make the Leap.

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Buying a netbook – 7 tips

Buying a netbook? Then you could use these seven tips that will help you choose the right netbook.

1. Netbooks explained

Do you really want a netbook or should you be buying a laptop or desktop computer instead? A netbook is a small, lightweight portable computer used primarily for browsing the Internet.

Netbooks generally boast smaller screens and keyboards than regular notebook or laptop computers. Most consultants use netbooks as secondary computers rather than as primary computers. Before buying a netbook, make sure that a netbook suits your needs.

2. Budget

Buying a netbook is an attractive option because netbooks can be inexpensive when compared to other computers. When considering which netbook to purchase, consider what you’re going to use it for. Like most products, the cheapest netbook may not be the best bet for your needs. Balance your budget with your wants and needs when it comes to your new netbook.

3. Test drive your netbook’s size

If you’re accustomed to a regular laptop, be sure to try out a netbook before you buy one. Small netbooks can be cute, but some netbooks’ small screens and reduced-sized keyboards can drive users crazy.

Test one out to determine how small a screen you can handle.

4. Memory capacity

How much memory will you need? Be sure to consider how much memory your new netbook comes with. Will it be possible to add more memory at a later date?

5. Battery life

Compare battery life when making your decision. Many buyers end up using their netbooks as portable media centres; while traveling or waiting for a flight, netbooks are handy companions so paying more for a six-cell battery may be a good idea. 

6. Where to buy

Today many of us do our shopping online. But some consultants are wary of buying computers online. What if something goes wrong? What about warrantees? Consider warrantees, maintenance issues and IT support when choosing what and where to buy. Remember, as a consultant you may not have an IT support team to turn to when things go wrong.

7. Do your research!

Before splurging on your favourite model, spend a few minutes researching the product online. What are customers saying? What do people love about it? What is the most common complaint with the product? 

Keep these seven tips in mind when buying your netbook, and you’ll end up with a netbook that suits your needs as a consultant. 

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Start your own consulting business

Start your own consulting business! So you’d like to start your own consulting business; what an exciting time this must be for you. Congratulations on considering becoming an entrepreneur and wanting to find out how to get started running your own consulting firm.

Steps involved in learning how to start your own consulting business

  1. Choose what type of consulting business you’d like to start.
  2. Familiarize yourself with what it takes to run this type of business. Will you enjoy it? Do you have the necessary skills? Will the business make money?
  3. Contact consultants working in this field. Do research.
  4. Develop a business plan.
  5. Start your own consulting business!

Start your own consulting business now

Getting your own consulting business up and running can be as simple or as complex as you want it to be.

When thinking about how to start your own consulting business, consider the following rule of thumb. The amount of time it takes to start your own consulting firm should reflect what you expect to get out of it.

  • Some entrepreneurs start by consulting as a side-job. As a result, many moonlighters figure out how to run their businesses as their business grows.
  • Other entrepreneurs take even bigger leaps requiring financial investment and big risk. When this is the case, entrepreneurs should do substantial research and planning before launching the consulting business.

There are many more resources here at this site that will help you start your own consulting business. By the way, if you’d like a mentor in your journey, consider registering for Become a Consultant: How to Make the Leap.

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How to start your own consulting business

How to start your own consulting business can be overwhelming. But figuring out how to start your own consulting business is easy if you take it one step at a time. If you need to know how to get started running your own business, you’ve come to the right place!

Before wondering how to start your own consulting business…

Before wondering how to start your own consulting business, it’s important to consider whether you are a good candidate for becoming a consultant.

Odds are that you are well-suited to running your own business, but why not compare how you stack up when it comes to qualities common to successful consultants?

Few people possess all the qualities of a perfect entrepreneur. If you lack skill in an area, it doesn’t necessarily mean that you should abandon your dream of running your own consulting firm.

No, instead, it’s important to identify your weaknesses–and then address them. For example, for those who lack organization skills, it may be a good idea to consider hiring your own consultant, such as a virtual assistant, to help keep you organized.

Resources explaining how to start your own consulting business

If you’re still wondering how to start your own consulting business, take a look at my how to become a consultant series. Or if you’re looking for a step-by-step guide explaining how to get started running your own consulting firm, consider taking my course, Become a Consultant – How to make the Leap.

Congratulations on starting your journey towards entrepreneurship!

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How do I become a consultant?

How do I become a consultant? As a new entrepreneur, it’s common to wonder, "How do I become a consultant?" I have written many posts to help you become a freelance consultant, but don’t forget to ask for input from working consultants in your field and community.

How do I become a consultant – First steps

In this digital age, sometimes there’s a tendency to ignore the old-fashioned ways of getting answers to our questions. A smart way to find out how to become a successful consultant is by asking people you know (or who live in your community), "How do I become a consultant?"

For example, if you’re considering becoming a grant writing consultant, try locating someone in your area who works in this field as a consultant. Doing this can be helpful on two fronts:

  1.  Trying to find a grant writing consultant will give you ideas about advertising. Were there any consultants advertised in the phone book? Was it difficult to find a grant writing consultant? 
  2. Most working consultants remember what it was like to get started from the ground up. Most would be pleased to offer you a little advice and guidance about setting up your consulting business. You don’t have to view successful consultants as your competion. They are working professionals who’ve been able to make their businesses work. Don’t you want to know how they did it?

How do I become a consultant – Key reminders

"How do I become a consultant?" When looking for answers to this question, it’s best to diversify your tactics. In other words, read books, do online research, and interact with working professionals.

So the next time you find yourself wondering how to become a working consultant, remember that there are a number of resources that exist to help!

By the way, if you’d like a mentor in your journey, consider registering for Become a Consultant: How to Make the Leap.

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Trust – the launching point for your business

As a follow up to the last post on trust as the key to your business success, here’s a great piece on leveraging trust so that you can make the leap to entrepreneurship. Is analysis paralysis keeping you from maximizing opportunities?

It’s easy to get caught up in planning and analysis. After all, we’re overwhelmed with messages about putting together solid business plans so that you can build a solid business. But sometimes, you just need to make the leap. You just need to trust that things are going to work out. It makes sense to have a plan, but you can’t expect perfection from that plan. At a certain point, you need to trust in the preparations you’ve done and in your own ability to move forward.

Of course, it’s okay to ask for help in your journey. If you’re looking for mentorship, take a look at Become a Consultant: How to Make the Leap.

Trust – the key to your success

Trust — it’s the key to success in business. If people don’t trust you, they won’t believe you. If they don’t believe you, they won’t buy. If they don’t trust you after they buy, they will experience buyer’s remorse. They won’t buy from you again. They won’t promote your products and services to their trusted contacts.

But how do you build trust? For consultants, it starts with building your expert status. But it’s more than that. You need to build trust into every step of your relationship with your prospective customers, customers, vendors, suppliers, contractors, employees and community. After all, if you want to charge consulting fees that reflect the value you provide, you have to have customers who trust you enough to believe in that value.

What steps have you taken to build trust into your business operations?

Get six tips for jumpstarting your expert status when you sign up for our newsletter — above, top right.

Ready to make the leap to consulting? Build your business with Become a Consultant: How to Make the Leap — whether you’re just thinking about consulting or stalled in succeeding with your current business.

Build your business: Avoid the send button

There will come a point where you and a client won’t see eye to eye, no matter how well intentioned you are.

Clashes with clients

If you’re finding yourself about to respond to an email that rubs you the wrong way, consider holding off for at least 24 hours.

While it may be tempting to dash off an email right away because you’d like to deal with it promptly or because you feel empassioned in the heat of the moment, hold off for 24 hours. Do write a draft email, but don’t send it until the next day.

Re-reading the original email again the next day may not provoke the same reaction in you, and chances are you’ll be relieved that you didn’t send your response from the night before.   

Making mistakes

The same principle applies to an email that discusses a mistake that you made or an embarrasing oversight that you missed.

When faced with your mistake, don’t overreact and over-compensate. For example, if a client emails to let you know that you’ve overlooked a major part of the project, you may feel embarrased and promise them a complete revision free of charge to make up for it.

But I guarantee that you’ll be kicking yourself for agreeing to do work for free to make up for your embarrasment. Once the initial sting is over, you’ll realize that everyone makes mistakes and there’s no need to promise the moon as a result. Admit your mistake and rectify it, but don’t overreact.

It’s wise to set a policy for yourself that emails don’t always need to be responded to right away–especially if they’re sensitive issues.  

Managing client behaviour is one of the most complex parts of consulting. The good news is that you’ll learn best practices along the way, and your list of happy clients will keep growing.

Adding value

The principle of wait-before-you-send applies to good news emails, too. Before sending an email, consider how you can revise your message to add value to your client. Can you suggest further improvements to the project? How about a second phase of the project that expands on the first phase? Like any written project, a delay and a second edit always improve the message.

Starting a consulting business

Starting a consulting business can be one of the most exciting times of your life. But starting a consulting business can also be a stressful time. When you start launching your own business, you are taking a leap of faith.

Considering starting a consulting business?

There are many reasons why you might want to be starting a consulting business. Maybe you’d like to set your own schedule, work from home, or spend more time with your family. Or maybe you’ve always dreamt of starting a consulting business, and you’re finally considering taking the next step.

Whatever the case may be, congratulations! Just being here at this site means that you’re getting serious about beginning your career in consulting.

When I talk to people who are considering starting a consulting business they are often so excited that they get me excited too! But while these are exciting times, launching a consulting business is serious, especially when you’re investing time and money into the endeavour.

In order to ensure success, it’s best to start your consulting business armed with as much information as possible.

Starting a consulting business the right way means doing research

In order to give your business the best chance to succeed, I recommend doing as much reading and research as possible. Luckily, you’ve find the right spot to find out all about how to become a consultant!

I am a consultant. It’s what I do. But I’m also a people person, and I enjoy helping others succeed. In fact, that’s the motivation behind this blog.

I’ve written over 1100 posts on this blog to help people like you get started on the road to entrepreneurship. While I believe that I’ve covered almost every topic I can think of, I encourage you to look around the web and see what else is out there on the topic of starting your own consulting business.

But before you go, I encourage you to bookmark this site and subscribe to the mailing list (above left). And have you considered ordering one of my workbooks: Discover Your Inner Consultant or Discover Your Inner Entrepreneur (For Moms)?

As you grow in your journey towards starting your business, you’ll find that questions will arise. Feel free to come back often, use the search box (below, left) and ask questions.  

Once again, congratulations on your journey towards consulting!

By the way, if you’d like a mentor in your journey, consider registering for Become a Consultant: How to Make the Leap.

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12 ways to pump your ego

At times, consulting can be a lonely business. Loneliness can hit home when you have something to celebrate but you don’t have co-workers to pat you on the back! Now and then, it’s important to pause and reflect on your successes. Here are 12 ways to pump your ego.  

1. Make a list of your top 8 projects or achievements.

2. Remind yourself why you started consulting in the first place. And while you’re at it, take advantage of your favourite feature of consulting.

3. Schedule a motivational session with another consultant (or a friend in a similar field). Get together over dinner and discuss your top projects and favourite memories from the past year.

4. Make a list of your top five skills. What are you best at? When do you feel like you’re "in your element?"

5. Keep a folder detailing praise, awards, testimonials, and recognition. Have a look though it on occasion. Reflect about how far you’ve come and what people have said about you and your work.

6. After reflecting on your successes, consider some fun and exciting goals that you’d like to achieve over the next year. Make another list detailing how you’re going to achieve these goals and why you’re capable of making them happen. 

7. On your website, rewrite your biography, byline, or "about" page–touching on your top achievements.

8. Try to remember a project that made you feel overwhelmed or inexperienced. Contrast those feelings against how you’d feel tackling that project today.

9. Pitch a story about your business to a local magazine or newspaper. Don’t be shy! 

10. Buy something extravagant because you can afford it.

11. Consider what your business would be like if you just stopped doing everything that you do. Consider the many hats you wear. Consider how important you are. Without you, your business would be non-existant.

12. Write a press release detailing your business’ achievements and submit it to local and online media.

It’s great to pump your ego when you’ve got something to celebrate.

Bit if you’re ever feeling down or depressed, remind yourself of your top achievements and you’ll be sure to get your motivation back.  

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5 age-old ways to grow your business

Consultants are always thinking about growing their businesses. In fact, even when they’re completely booked up, consultants still focus on generating more leads. 

Here are 5 age-old ways to grow your business as a consultant:

1. Networking: There’s no better way to grow your business than to get out and network. Networking can be structured, attending a Chamber meet and greet for example, or it can be impromptu, striking up a conversation with someone next to you in line at a coffee shop for example. If you’re a new consultant, networking is definitely where you want to spend your time so that you can build your sphere of influence.

2. Never Stop Marketing: When you run your own business, marketing and promotions are a constant fact of life. No matter how busy you are, it’s important to nurture your existing relationships and look for new prospects. Ask yourself, "What have I done today toward getting new clients?"

3. Online Promotions: Of course, online promotions usually start with a website, but having a website is just the tip of the iceberg. Check out these five ways to promote your business online.

4. Referrals: It’s easy to get wrapped up in trying to find new clients, but turning clients into repeat customers is one of the smartest things you can do for your business. Treat your clients well and make sure they’re happy with your work. Your clients will want to work with you again–and they’ll refer their friends and contacts to you. Be open and honest about the fact that you’d love your client to refer new prospects your way. 

5. Always Re-Assess: When launching a business, you should put together a business plan and forecast your income. In addition, it’s a smart idea to re-assess your business practices on an annual or semi-annual basis. How has business been? What are your strengths and what are your weaknesses? Would you benefit from a mentor?

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Start a consulting business

Start a consulting business; it sounds so easy, doesn’t it? In many ways, it is easy to start a consulting business! The trick is to make sure that you’re well-suited to the type of business that you choose to run.

I want to start a consulting business, but…

Some of you might be entrepreneurial-minded, but aren’t sure what type of business to start. There are a number of consulting businesses to consider starting. Take a look at this list and note which ideas appeal to you. Do you think you’d like to start a consulting business in any of these fields? If none of these appeal to you, is there another type of consulting firm you’d like to run?

In order to start a consulting business, you’ve got to have the skills

The next step in choosing and launching your business is to make sure that you’re well suited to your chosen line of work. For example, you may love Avon products, but unless you are a confident and outgoing salesperson, you may have trouble making sales–regardless of how much you love the products.

Sometimes it can be difficult to know what type of consulting will be a good fit for you. If this is the case, it can be helpful to take an inventory of your experience and skills. Being aware of your skills can be a substantial help when deciding to start a new business from the ground up.

In order to start a consulting business, you have to be able to sell a service or product that is in demand by people who need that service or product.  While you do have to be knowledgeable and well-suited to the business that you choose to start, you don’t have to be a renowned "expert" in your chosen field. As long as you sell a service or product that is needed by those in your target market, you’ll have a shot at success.

Once you’ve settled on your idea and written a business plan, you’ll be ready to launch a new consulting firm!

Want help in making the transition to consulting? Enroll in the official Consultant Journal course – Become a Consultant: How to Make the Leap. With audio and written lessons, 25 exercises, discussion forums and more, you’ll have mentorship in your journey to consulting.

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Why procrastinate tomorrow?

When you think of procrastination, you may think of putting off small tasks or projects. But over the years I’ve noticed that many people procrastinate big ideas, such as acheiving their career-related dreams.

Putting off your dreams

I’ve been a consultant for over ten years, and I’ve met many people who want to launch their own consulting firms. But while some people actually become consultants, there are others who simply dream of doing it but never actually make the leap.

So what sets the doers apart from the dreamers? There are many factors, such as financial savings and confidence. But a big factor that separates the dreamers from the doers is that the doers "do!" In fact, I’ve helped many dreamers become doers through my course, Become a Consultant: How to Make the Leap

How procrastination hurts

There is a substantial difference between procrastinating and working toward a goal, even if you work towards your goal at a slow pace.

Tax software debate

Every year around this time, my post on tax software, specifically UFile and Quicktax, gets a lot of attention. The opinions are those of the posters. I have never tried UFile and I’ve always been fairly happy with Quicktax, although I’m probably going to work with a professional accountant this year, since I’m looking to incorporate.

Update: Oops. I originally wrote debata. I was thinking about data.

Getting a business credit card

Getting a business credit card is just another step in the process of becoming a consultant.

Financial institutions are becoming increasingly accustomed to offering financial products to consultants. But if you’re considering getting a business credit card, it’s simplest to apply for credit cards or lines of credit before making the leap into consulting full-time.

If you no longer have an employer, don’t worry. It’s still possible to get a business credit card as a consultant, although the application process may be a little more thorough.

As with any financial product, your credit rating is important. If you’re considering getting a credit card for business, obtain a free copy of your credit report to see where you stand.

If your credit report shows areas where you can improve, take action to improve your rating. Besides, it’s wise to get your financial house in order no matter what your plans.

Once you’ve been approved for a business credit card, make sure to keep on top of payments. Try to pay everything off at the end of the month. If that’s not possible, be sure to pay down your high interest loans and cards first.  

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How to start a consulting firm

How to start a consulting firm is a crucial concept that all new entrepreneurs should familiarize themselves with. But don’t worry, learning how to start a consulting firm isn’t difficult. In order to launch a successful new business, it’s as simple as doing research and writing a business plan.

While many entrepreneurs have a background in business, it’s not always the case. Regardless, I always advise new entrepreneurs to write a business plan.

How to start a consulting firm – Is there only one right way?

Some of you may read this and think, "I just want to know how to start a consulting firm. I don’t want to write a business plan!" If that’s what you’re thinking, that’s okay too.

Some of you may be interested in testing the consulting waters before getting serious about consulting. This can be a wise idea.

For example, before investing your hopes and savings in launching a wedding consulting business, it may be a good idea to try your hand at planning a family member’s wedding first. If you enjoy it, then expand your reach a little more. Try it again, perhaps this time for a friend of a friend. Starting slowly allows you to find out whether you’re as well-suited to your idea as you think you are.

Many successful entrepreneurs have learned how to start a consulting firm by flying by the seat of their pants. In other words, many entrepreneurs learn how to run a business as their business grows.

However, as the saying goes, it is the wise who learn from the mistakes–and successes–of others. In the long run, it’s a good idea to have all your questions and worries addressed before you launch your business–especially if you’re investing a lot of money into the business.

The bottom line is that once you start to think about consulting full-time or investing substantially in your business, it’s time to write a business plan (if you haven’t already).

How do I know how to start a consulting firm?

There are some general principles regarding how to get your consulting business off the ground, but figuring out how much time to invest in the beginning stages of your consulting business is up to you. My business plan kit may help, but you can also put something together on your own, if you have the time and ability to do the research.

That’s the beauty of consulting. You’re the boss!

But, if you’d like a mentor to guide you in your journey, consider registering for Become a Consultant: How to Make the Leap.

 

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6 websites to build your business

Over the years I’ve come across many websites that can help build your business. Here are six websites that you may find useful when building your business.

1. Twitter - Twitter is a website that helps people communicate "through the exchange of quick, frequent answers to one simple question: What are you doing?" Twitter has become a popular way to let clients–and potential clients–know what’s new in your business. Twitter certainly isn’t for all consultants, but you’d be surprised at the number of consultants who use Twitter to build their businesses.

2. FreshBooks - FreshBooks is a quick and easy invoicing system. It’s web-based, and they offer a few service tiers. Their free tier (with a maximum of three active clients at once) is perfect for those of you who do consulting as a side job. If you’re a full-time consultant, you may want to upgrade to a plan that offers more features. I like FreshBooks and I’m an affiliate, which means I get a small kickback if you sign up. But I really do like them.

3. Life Hack - A "life hack" is "any hack, tip and trick that gets things done quickly by automating, increasing productivity and organizing." Procrastination can be dangerous for consultants. So if you’ve got the urge to procrastinate, at least read something that’ll increase your productivity!

4. Online Forums - No matter what type of consultant you’re becoming, it’s a wise idea to find a forum that relates to your niche. For example, if you’re a home staging consultant, you may want to find an online forum that covers interior design, new trends in real estate, and so on. Once your business is up and running, forums are a great way to learn more about your field, find a mentor, and stay on top of trends. Try putting your consulting field and "forum" into a search engine.

5. Accounting Coach: I’ve shared many tips about tax write-offs, credit, and more. But if you’re looking for guidance and tutorials on specific accounting principles, try Accounting Coach.

6. YouTube: There are many reasons for becoming a consultant, but when it comes to IT support, quite often you’re on your own which can be maddening. Even if you’re not technically inclined, YouTube has many tutorials that will help you trouble-shoot, install new programs, etc. So the next time you find yourself wishing for an IT professional, do a quick search at YouTube. Try using the words "screencast" or "tutorial" to narrow down your search.

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8 reasons consulting rules

Although I’ve been a consultant for over ten years, I can still honestly say that consulting rules!

Here are eight reasons why:

1. Work-Life Balance: Even before I had a family, work-life balance was important to me. I don’t know of any other lifestyle other than working as a consultant that offers such flexibility with few drawbacks. And it’s not just women who want balance, men are just as interested in flexible schedules!

2. Extra Income: While my income stays rather steady, some months I earn more than I expected. I don’t have to convince you that having extra income rules! And as a consultant, getting extra income all starts with setting your fees

3. Mentoring Opportunities: I’ve always enjoyed mentoring others, and I’ve helped many people make the leap into consulting. Mentors are crucial, and I’m glad I’ve been able to lead new consultants to success.

4. Doing What You Love: No matter what type of consultant you are, odds are you’re doing what you love. I know I am, and that’s one of the top reasons that consulting is so satisfying.  

5. Working From Home: Avoiding commuting to and from work rules for many reasons. Transportation costs are low and so is my carbon footprint! Plus, the convenience of working from home just can’t be beat.

6. Choosing Your Co-Workers and Clients: As a consultant, you’re the boss.  You’re not obligated to work with anyone who doesn’t share your values. As a consultant, you might even find yourself considering whether to fire your customers!  

7. Tax Write-Offs: Come tax time, I have to admit that writing off business use of my home and car comes in handy.

8. Inspiring Others: I love telling people that I’m a successful consultant who runs her own business and sets her own hours. A big part of sharing my story is to inspire others to make the leap and become a consultant.  

Looking for more inspiration? Check out the big list of reasons to become consultants!

Related posts:

Is it ethical to run a side business?

Many people dream of becoming consultants. But if you’re already working as an employee full-time, it can be difficult to make the leap into full-time consulting. This is one of the many reasons why you may want to start a side business. But is it ethical to run a side business while holding down a regular job?

Yes, it is ethical to run a side business while holding down another job! In fact, it’s becoming increasingly common for nine-to-fivers to use side businesses as a way to launch into new careers. And many people successfully run ethical side businesses while holding down their primary jobs. 

The way to keep your side business ethical is rooted in common sense. In short, don’t let your side job negatively affect your day job:

  • Don’t run your side business during your day job;
  • Don’t take on too much and show up at your day job late, distracted, stressed, or over-tired;
  • Don’t run a side business that competes with your day job; and
  • Don’t do anything that goes against your contract with your employer.
  • Do continue to work hard and be focused at your day job;
  • Do be open and honest if asked about your side business;
  • Do operate your business in a manner that you’ll be able to explain to your boss with your head held high.

Believe it or not, side businesses can actually be good for your day job!
If done right, your side business should give more money (thanks to tax write offs and a higher income) and increased life satisfaction (as long as you select a side business that suits you). Now what employer wouldn’t want a happier, richer employee? 

Check out my book on Side Jobs:

 Side Jobs - Second Jobs, Side Gigs & Part-time Businesses Ebook

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Open thread: where do you find your community?

In the newsletter this month, I’ll be discussing the power of joining a business community. Consultant Journal aims to help independent consultants find a place to connect with other consultants, learn about business management and share successes and struggles. But I’m curious…what are your favourite places to find community in entrepreneurship and business?

Top 5 small biz opportunities in the recession

Via Anthill Magazine, here are the top 5 small business opportunities during the credit crunch:

  1. More skilled workers available
  2. Good time to cut back unnecessary expenses
  3. Cheap capital
  4. Better rates for advertising
  5. Low prices on capital

For consultants, this can be a fantastic time to be in business. That’s because many companies start outsourcing projects or turning to short term contracts, rather than committing to hiring full-time employees.

Related – Become a Consultant: How to Make the Leap Course

How to start a consulting company

How to start a consulting company is one of the first tasks you are faced with as a new entrepreneur. Once you’ve figured out how to start a consulting company, you get to focus on the fun stuff: consulting! So let’s talk about how to get your consulting business off the ground.

How to start a consulting company – It all starts with a plan

One of the best ways to get your consulting company started on the right track is to write a business plan (also known as a business concept). In your business plan, you’ll investigate the important questions related to getting your business up and running. 

Some questions you might tackle in your business plan:

  • What services or products will I offer?
  • How much will I charge?
  • Who will be my target market?
  • Who are my competitors?
  • Will I charge tax?
  • Will I have a website?
  • How will I find clients?

Thanks to numerous resources, such as this blog, it is not difficult to find out how to start a consulting company. The most difficult part about doing so is making the time to do the research.

How to start a consulting company – Solidifying your plan

So if you are interested in learning how to get your consulting business off the ground, I recommend writing a business plan. But it doesn’t have to be complicated, so don’t get overwhelmed! 

First, find a sample business plan that you can use as a guide. Many people find it easiest to write their business plan in a question and answer format.

On your own computer, start a new document in your word processor. Then see how far you get on your own. Once you get stumped, simply turn to your friends, peers, or the internet for help. In fact, why not bookmark this site to come to later? I’ve written over 1100 posts on the topic of starting your own consulting business!

Once you’ve pieced together your business plan, you’ll have figured out almost everything you need to know about how to start a consulting company. 

For those of you looking for a little more structure or guidance, I recommend my course, Become a Consultant – How to Make the Leap. By all means, you can succeed as a consultant without taking the course, but I know that some entrepreneurs need a little boost to get started. I’m proud to offer this course to those of you who’d like to know the inside scoop on how to start a consulting company.

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Start consulting

Start consulting! Congratulations, you want to start consulting. Now that you’re considering launching a consulting business, you’re probably wondering where to go from here.

Start consulting

If you’re wondering how to start consulting, you’ve come to the right place. My blog has over 1100 posts detailing how to start consulting.

Whether you want to start your own IT consulting business or whether you’re wondering what type of consultant you should become, I’ve written about it all. The place to launch your consulting career is right here.

Start consulting right now!

I invite you to start your consulting career right now by familiarizing yourself with the ins and outs of consulting.

Are you wondering who hires consultants? Are you curious about how much consultants make? Or maybe you’re looking for a real-life story of how someone just like you became a freelance writer? Or maybe you’d like to read how I became a consultant?

No matter what you’re looking for, I’ve got it. The best way to begin consulting is to dig in and do some research!

If you think you need someone to mentor you through the process, take a look at Become a Consultant: How to Make the Leap, a course designed to help you become a consultant.

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Open thread: what do you want to know?

Instead of pushing content to you today, we’re opening up the blog to you. What’s on your mind? What questions do you have about surviving and thriving as an independent consultant?

Our site stats show that our tax write off list is on many people’s minds and that many of you are lining up to check out our Become a Consultant course. But what about you?

 

Consulting business mentor tips

Consulting business mentor tips — for anyone starting or running a business, a mentor can be powerful. The experience of being an independent consultant may seem a bit isolating or overwhelming if you try to do everything on your own. By building a relationship with someone who’s been there before, you can help to avoid common pitfalls and get guidance on your journey.

When I started out in consulting, I didn’t really know anyone else running a business. I knew some freelance writers and designers, but they didn’t really run *businesses*, per se. They took whatever work they came their way and they were just happy to be busy creating. They didn’t think about the direction of their businesses, their positioning, client management, market strategies or anything that might seem "business-y".

In time, I connected with the right mentors and got on track to building a business, rather than a job. Doing so was criticial in building my future — and that of my family.

I’ve been so honored by the power of mentors in my life that I first started Consultant Journal as a way of mentoring other consultants. Become a Consultant: How to Make the Leap is the newest extension of Consultant Journal — an online course designed to mentor you through the journey toward becoming an independent consultant. The course includes a one-hour review of your marketing plan. I really think this may be the most valuable part of the course. I’ve built my entire business around marketing consulting and coaching and I’m excited about coaching other independent consultants so that they can build marketing skills.

What could a mentor do for you?

Consulting business for sale

“Consulting business for sale!” The answer to many new entrepreneurs’ dreams is to find a consulting business for sale. Some entrepreneurs choose to avoid starting a new business from the ground up by purchasing a business that is already established.

Consulting business for sale

When considering purchasing a consulting business, it’s important to be aware of the existence of work from home scams

That being said, rest assured that there are a number of legitimate consulting businesses for sale. The simplest way to avoid getting involved with a fraudulent business is to avoid paying any money before you are certain about the business’s legitimacy. There is no reason why you should have to pay to find out more about a consulting business for sale! Similarly, be cautious about sharing your personal and financial information when considering purchasing an established business.

But even if you’re convinced that the consulting business that is for sale is legitimate, there are a number of other questions you should ask yourself.

“Turnkey consulting business for sale!” But is it the right fit for you?

No matter how great a deal or well established the business, it’s important to determine whether you’ll enjoy doing the job.

For example, if your sister is a successful wedding consultant and wants to sell you her turnkey business at a reduced rate, this doesn’t mean that you should snap up this bargain! First you should ask yourself what’s involved in becoming a wedding consultant. What skills does a wedding consultant need? And most importantly, do you possess these skills?

If you’re not sure about your owns skills and are looking for guidance regarding the types of consulting jobs you might enjoy, consider ordering my Discover Your Inner Consultant workbook. I wrote this workbook in order to help people with entrepreneurial spirits identify their unique skills and knowledge.

So the next time you come across an ad boasting “Consulting business for sale!” make sure you consider its legitimacy, as well as whether the business will be a good fit for you.

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5 must-have marketing tips

Building your consulting business takes ongoing planning — and action. If you aren’t constantly working at finetuning and implementing your marketing plan, you may one day find yourself out of clients.

5 must-have marketing tips

  1. Know your market. You can’t build a marketing plan if you don’t know your market. Figure out who your potential customers are — and what makes them tick.
  2. Research your market. Spend some time identifying and analyzing your market. Is the market big enough to support your business? Is there a particular way in which you need to connect with it? Get the details.
  3. Build a plan. Whether you spend three hours or three months on building your marketing plan, do take the time to plan. If you take a haphazard approach to planning, you’re going to end up with haphazard results.
  4. Make a holistic plan. Be sure to build a plan that looks at price, promotion, product/service and place (distribution). If you only ever think about promotion, you may end up filling your pipeline with people who are paying too little for your services — you could end up with an unprofitable business.
  5. Review and refine. Once your marketing plan is set, check in with the results from time to time. It’s okay to make changes as you go along — and it’s a necessity to make changes before you reuse the plan.

Marketing isn’t easy for most people. It takes planning and dedication. But it can be one of the most powerful strategies in building your consulting business.

Looking for help in building your marketing plan? The Become a Consultant: How to Make the Leap course includes a FREE one-hour review of your marketing plan.

60 Minutes’ Mike Wallace on coaches and mentors

Mike Wallace has been co-editor of 60 Minutes since 1968. Early on in his career, Mike was coached and mentored by Harvard graduate, Arthur Goldsmith.

Mike was working on commercials, but his dream was to work in news. Arthur saw Mike’s potential and encouraged Mike to make the leap toward news.

"Arthur kept on me, and I paid attention," said Mike (expired link). "He told me that I wasn’t realizing enough of myself. And finally there came a time in my life when I said, ‘Arthur’s right. He’s right!’ So I gave up everything and it worked out."

Mike’s story illustrates one of the five reasons why professionals need mentors: an outside point of view.

When you’re working hard in a career you don’t love, it can be a juggling act to find time to think about the big picture. But a mentor’s role is to help you recognize your strengths and to help you consider your career as a whole.

Sometimes it takes the encouragement and insight of a mentor to propel you closer to your dream.

Mike Wallace recognized the power of mentorship. Mike’s mentor led him to a successful career in news broadcasting, which, for Mike, was the realization of a dream.

Where could a mentor take you?

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Writing off business use of your car

Writing off business use of your car can be worthwhile. According to US IRS regulations, you can deduct a number of business transportation and related expenses if you’re a sole proprietor. These deductions can include public transportation and the cost of driving and maintaining your vehicle.

Business and personal use

Most consultants use their vehicles for both business and personal use.

If this is the case, be sure to keep a record of your business and personal mileage. On the first day of the tax year, make note of your starting mileage. Keep a notebook in your car. When you drive for business purposes, mark the mileage of every business trip down in the notebook. On the last day of the tax year, make note of your mileage once more.

What is a business trip: ordinary and necessary transportation

According to US IRS regulations, when it comes time to tracking trips for write off purposes, business trips have to be ordinary and necessary trips.

Ordinary trips are "common and expected" in your field. Necessary trips are "helpful and appropriate" but don’t have to be "required."

If you’re an employee, note that there are strict regulations against claiming commutes to and from your place of employment. To make sure you’re keeping accurate records, review the IRS’s regulations.

Filing your taxes

When it comes time to file, most people have two choices:

  1. The standard mileage rate; or
  2. Actual car expenses.

Standard mileage rate

The standard mileage rate is a fixed rate that you can apply to figure out the deductible costs of operating your car for business purposes. For example, the US IRS’s standard mileage rate in 2007 was 48.5 cents per mile.

If you choose to use the standard mileage rate, you cannot deduct your actual car expenses. 

Actual car expenses

If you choose to file using your actual car expenses, then you can claim your actual expenses, which can include depreciation, fuel, oil, registration fees, repairs, insurance, etc.

Keep detailed records and all your receipts. Come tax time, calculate both methods and file using the method that gives you the highest deduction. Note that not all people qualify to choose from either option, so be sure to check out the exceptions.

This post refers to daily trips, such as visiting clients, driving to business meetings, etc. Overnight trips fall under the IRS’s definition of travel and are not covered in this post.

This article refers to US IRS guidelines only. Tax regulations differ from country to country and are subject to change. So be sure to check with an accountant or otherwise qualified professional about your specifics.

Writing off business use of your car is one of the many topics you’ll become familiar with once you become a consultant.

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How do you become a consultant?

How do you become a consultant? Once you’ve made the decision to run your own business, the question that invariably follows is "How do you become a consultant, anyway?" There are many ways to start running your own consulting business, but the best way to become a consultant is to start by writing a business plan.

How do you become a consultant?

As soon as you decide you’re a consultant, you essentially become one. But before taking the leap and figuring out how to become a consultant as you go along, I recommend putting together a business plan.

For some of you, the thought of putting together a business plan might be overwhelming. But it doesn’t need to be. A business plan is just a document that explains what you plan to do and how you plan to do it. For those of you interested in taking the leap into consulting, I’d be happy to take you through the step-by-step process in further detail.

So how do you become a consultant? You plan to become a consultant by getting all your questions answered at the beginning by writing a business plan.  No matter whether you plan on consulting full-time or on evenings and weekends, putting together a business plan will help you focus your ideas and plan for the future. Often, the act of putting the business plan together will help to answer most of your questions about how to get your business started.

How do you become a consultant after your business plan is in place?

Once you’ve written your business plan, you should have almost all your questions answered about how to become a consultant! Now you’re ready to get serious about consulting and start executing your plan.

Many successful consultants are asked, “How do you become a consultant?” They frequently answer that finding those first few clients was tough, but that one job led to the next. And soon enough they were run off their feet.


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Work-life balance

I was quoted in various Canadian newspapers today in a piece on work-life balance. The article says that I started my consulting business so that I could stay home with my sons. However, it doesn’t point out that I started the business several years before I even had kids. It was part of long term planning for work-life balance.

Still, many people start businesses once they have children. It’s increasingly popular for women to start businesses during maternity leave, especially here in Canada where mat leave is a year long. I wrote Discover Your Inner Entrepreneur for Moms to help women (and some dads, too) uncover possibilities for starting new businesses.

What do you think about work-life balance?

5 reasons why you need a mentor

The power of business mentors can be easy to overlook when you’re busy planning a new career or running your business. But although you may feel you have little time to dedicate to finding and working with a mentor, your success and growth may depend on it.

Five reasons why you need a mentor

  • Expertise

Mentors have knowledge and experience that you can draw upon. Mentors have been there. They are in the position to say, "Have you tried…" and "When I was in your situation, I.." and "Have you looked into.."

  • Networking

Mentors are established professionals. Once you start working with a mentor, you can tap into their network of contacts. This could mean other professionals, clients, or mentors who specialize in other areas.

  • An outside point of view

When you’re busy growing your business, it can be difficult to see the big picture. You’re so focused on your business plan or your next contract that it can be difficult to see your business in the long-term. Are you headed in the right direction? A mentor can offer a fresh point of view. 

  • Shared experiences

Mentors have been through what you’re going through. Or in the least they can emphasize with you. It’s crucial to be able to share your experiences and plans with someone who can understand and offer their honest opinion.

  • Confidence

There should be a high level of trust and mutual respect between you and your mentor. Your mentor should praise your skills, as well as let you know where you can improve. When someone you trust is being open about your abilities, you know where you stand, which instills confidence.

When starting a new career or taking an existing career to the next level, it’s important to have a vision of what you want to achieve. Whether or not your mentor offers time for free or for a fee, they enjoy nurturing and growing your business. Mentors help you refine your vision and make sure you’re on the path to get there.

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Writing off business use of your home

Writing off business use of your home can seem overwhelming. What’s business? What’s personal? Where do you draw the line when writing off business use of your home?

If you run your business in the United States, there are clear regulations and rules set up by the IRS to answer these questions.

Who can write off business use of the home

In general, you may qualify to deduct home expenses if you regularly and exclusively use your home office as your main place of business.

Regularly means that you use your home office as the primary place where you manage and administer your business. For example, you’re a grant writing consultant. You work from your home office for clients located all over the world. Or, for example, you’re a clutter consultant. You visit clients’ homes, but you run the administration of the business from your home office.

Exclusively means that you use a specific area of your home for business purposes only. You cannot use the area for both business and personal purposes. For example, doing all your work at the kitchen table does not qualify as exclusive use. This is because your kitchen table is also used for personal means. But doing all your work in a home office set up specifically for your business does qualify.

Check with the IRS for more detail and to learn about exceptions.

How much you can deduct when writing off business use of your home

Once you’ve figured whether you can write off business use of your home, it’s time to determine how much you can deduct.

The percentage that you can deduct is based on the size of your business space versus your personal space in your home.

For example, your home is 1000 square feet. Your home office measures 100 square feet. Your home office takes up 10% of your home. So you can deduct 10% of various types of expenses. In other words, in this example, your business percentage would be 10%.

What you can deduct

There are many expenses that you can deduct.

These can include

  • depreciation;
  • insurance;
  • rent;
  • repairs;
  • security system;
  • utilities; and/or
  • services. 

Generally, mortgage interest and real estate taxes cannot be deducted.

This article refers to US IRS guidelines only. Tax regulations differ from country to country and are subject to change. So be sure to check with an accountant or otherwise qualified professional about your specifics.

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Becoming an expert

Becoming an expert can help you bolster your consulting business. After all, as a consultant, you’re supposed to be an expert. If you establish your status as an expert, you should be able to win over more clients and charge higher fees. You should also be able to work more productively, since, as an expert, you know the tricks of the trade.

But becoming an expert isn’t as hard as it sounds. Malcolm Gladwell, in his new book Outliers, says it takes 10,000 hours to become world class at something. But, to boost your consulting business, no one’s saying you need to be world class. (That’s a noble goal, of course.) You can definitely benefit from becoming an expert without needing to become worldclass at it. Really, to become an expert, you just need to know more than your audience does. And that’s not quite as hard to achieve.

Want six tips for jumpstarting your expert status? Sign up for my newsletter (above right) and receive a free article that outlines how you can boost your credibility.

 

The power of mentors

The new year is an ideal time to consider career growth.

Have you considered the power of mentors? Make 2010 the year you make great strides in your career.

Here are five reasons why you need a mentor.

I’ve had many mentors over the years. To my great delight, I just reconnected with a mentor from 18 years ago – my boss in my first "real" job. She’s semi-retired now, but her stories of the amazing work she’d doing have inspired me. In fact, I’ve been trying to recapture what I learned in the counselling department where we worked together — and mix that in with ideas from the work she’d doing now. And it’s coming through in my work. Today, a client emailed me to say that he’s been delighted with the sensitivity I show. And I’ve been reminding him that, while I can give professional recommendations, it’s important that he own his business decisions and messages — that I can guide and validate, but I can’t make my advice "true" for him. It’s up to him to judge what really resonates for him. I know all that’s coming from my memories of working in a counselling department — and from the unique perspective that my mentor shares with the world.

Do you have a mentor?

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How long does it take to become a consultant?

How long does it take to become a consultant? When considering making the leap into consulting, many people want to know how long it will take to establish their business. In other words, how much time does it take before you can rely on a steady income?

With a well-organized office and a stack of business cards at the ready, many consultants feel prepared to work. But next comes the most crucial step: finding clients. How long it takes to become a consultant depends on how quickly you are able to build your list of clients.

How long does it take to establish your own business?

Every consultant is unique, so the time it takes to get established can vary.

Some new consultants need to invest substantially in networking and relationship building. Whereas other consultants have a wealth of experience and contacts, which helps them hit the ground running.

In my course, Become a Consultant: How to Make the Leap, I take students through a detailed sample marketing plan which gives insight into the level of marketing and networking required to successfully run your own business.

Can I jump-start my business and become a consultant overnight?

Some people are not satisfied with the answer to the question, "How long does it take to become a consultant?"

Although it’s not the norm, it is certainly possible to become a consultant overnight.

A number of consultants choose to purchase turn-key businesses, which are already in operation. When considering this option, it’s important to steer clear of work from home scams

How long does it really take to become a consultant?

So how long does it take to become a consultant? The answer rests with you!

The key to success is to build your network and implement your marketing plan in order to connect with your target market.

Because no matter how glossy your business cards are, they can’t help you unless they’re placed in the hands of potential clients. So get out there and start building your client list!

Want help in making the transition to consulting? Enroll in the official Consultant Journal course — Become a Consultant: How to Make the Leap. With audio and written lessons, 25 exercises, discussion forums and more, you’ll have mentorship in your journey to consulting.

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Become a consultant course – for charter members

Becoming a consultant is one of the hottest topics at Consultant Journal. And many of you have written to me to ask for personal help in becoming a consultant. So I’m pleased to announce the launch of Become a Consultant: How to Make the Leap. It’s an online course designed to mentor you in your journey toward becoming a consultant.

This course has been in the works for over a year. It started out as an ebook and grew from there. In recognition of the many ways that you might learn, the course uses a combination of audio, text, exercises and opportunities for discussion.

But what really excites me is that I’m offering a personal review of your marketing plan, as part of the package. I really want each and every person who takes the course to succeed. And, since I’ve made my career in marketing, I think it only stands to reason that I can add even more value to the course by helping you with your marketing plan.

Find out more at Become a Consultant: How to Make the Leap. I look forward to welcoming charter members into the program.

Regards,

Andrea Coutu

New course launches tomorrow!

Tomorrow, I’ll be launching a new online course, designed to help you in your journey toward becoming a consultant. The course has been a year in the works and I’m looking forward to opening up registration to everyone tomorrow. Till now, registration has only been open by invitation.

But that all changes tomorrow. I’m looking forward to helping more of you make the leap to consulting.

Make sure you don’t miss the announcement! Subscribe to the newsletter in the link above or get the RSS feed.

Happy New Year!

Wow, 2009! Happy New Year!

Are you working on some goals for the year ahead? As I look back on my list for 2008, I see that I achieved more than I expected with my business and personal goals…but that my home renovation list has a lot of items I haven’t crossed off! Well, with the diving real estate market, I admit we lost some motivation with our renovations.

But, in terms of my business and personal goals, I’m pretty happy. 2008 was all about pushing my comfort zone and taking the time to invest in myself and my business.

How about you? When you look back at 2008, where did you succeed?

I’ll be talking about my goals for 2009 in my newsletter this month, as well as on the blog. If you haven’t already taken the time to subscribe to the newsletter, simply add your email address in the box in the top right. Just for subscribing, you’ll receive seven tips for jumpstarting your expert status. And, hey, who doesn’t want to do that?

Light posting ahead

I just wanted to say that, as my family is celebrating the Christmas holidays, I won’t be posting much over the next week. Whether you celebrate holidays at this time of year or not, I wish you all the best and hope you have a delightful 2009.

Happy Holidays from everyone at Consultant Journal!

Oldie but a goodie

I’m traveling this week…and celebrating the holidays with my family. Light posting ahead! However, if you’re looking for something to read, check out this post on five critical elements to include on your website. By the way, if you don’t already have a website, add it to your "to do" list for the year ahead!

Top 7 business lessons from the Wiggles

This list of top seven business lessons from the Wiggles, a children’s entertainment group, may strike you as a bit off the wall. But, hey, being off the wall has been the secret to the $14 million the singers make every year. I’ve never seen the Wiggles on TV — this (expired) Youtube clip was my introduction. I can’t say I understand the appeal, but they’ve certainly found a market by choosing not to follow the crowd.

Getting back to your life

Around the holidays, people start talking about the things that really matter to them. Fun. Friends. Family. Time. Celebration. Giving. Community. We hear less about chasing money and more about putting meaning into life.

When you become a consultant, you have an incredible chance to put meaning into your life. Because consulting offers you the chance to have a lifestyle business, you have the opportunity to build your work schedule around fun, friends, family, time, celebration, volunteering, community building and so on. In fact, many people pursue consulting for those very reasons. Although they charge solid consulting fees for their expertise, they put even more value on the opportunity to live their lives according to their own priorities.

What do you value most? Do you have the chance to make that a priority?

Content Rich – a review

Looking for ways to increase your earnings? Leverage your writing skills. A few months ago, Jon Wuebben sent me a copy of Content Rich: Writing Your Way to Wealth on the Web. Since I started out as a freelance writer, I was curious to see what Jon had to say about writing.

Content Rich is worth a read. If you want to know about search engine optimization, social media, traffic generation tools, ad development, marketing and copywriting, this is the book to get.

To be honest, I didn’t learn much from this book. I’ve been working in the field for years. But most of you are new to these ideas and you’re the target market for the book. Jon does a fabulous job of pulling together all the concepts and laying them all out in plain language.

(And, hey, if you think you’ll have any Amazon gift certificates left from the holidays, this book is worthy!)

The Consulting Rookie: Overcoming Misconceptions

This is a guest post by Christine Epps. Christine is new to the world of consulting, but she hasn’t let that stop her. Here’s her take on becoming a consultant when you’re still new to the world of work….

Being just 22 years old and a “budding” retail marketing consultant in Baltimore, I constantly meet “senior” consultants and clients who equate my age to my talent.  “Oh you’re only 22 years old? So you’ve been doing this for, like, what, 22 minutes? You’re just a baby!”

Not only are comments like this to professionals my age condescending, but they’re uninformed, inconsiderate, and worst of all–prejudiced.  My generation is highly motivated and educated. We may not know all the answers, but we do know what avenues give us those answers. “Generation X” is once again news for today’s headlines, but this time for a very different reason.

The Bureau of Labor Statistics data for 2005 showed that some 370,000 young people ages 16-24 were self-employed, the occupational category that includes entrepreneurs and consultants. In 1975, when baby boomers were young, some 351,000 were in that category. While that growth over 30 years isn’t striking, indicators suggest more change ahead. The Bureau of Labor Statistics projects the self-employed category will grow 5% from 2004 to 2014, compared with 2% growth for the decade that began in 1994.

There are four major misconceptions associated with young consultants- again, all uneducated, inconsiderate, and prejudice. But instead of feeling defeated whenever a prospective client utters a misconception to you, remain polite and shut them down (and shut them up) with the following four truths:

Misconception #1: “I know that you want to be lazy and cut corners on this project, but please don’t.”

Answer: Young consultants are hardworking professionals, and do not have any different of a work ethic than that of seasoned professionals. In fact, younger professionals are typically more inclined to dedicate long hours to a project. (If you’re as sarcastic as me, blame it on your juvenile ability to function under less hours of sleep than your seasoned competitor.)

Misconception #2: “I know you want to build a relationship with our company fast, but that takes time. Your generation wants immediate gratification. You don’t want to pay your dues like I had to.”

Answer: College students and recent graduates know all about paying dues. In fact, our generation has more college graduates than any other generation. We know what it means to put in long hours, receive constant criticism, and work in teams. In fact, many young consultants once worked as interns- unpaid interns-in the hopes of not moving up the corporate ladder at warp speed, but to- gasp!- pay their dues.

Misconception #3: “Now remember, don’t go gossiping about this to your friends.”

Answer: Business 101: Practice client confidentiality. There is no age requirement for professionalism. For professional and legal reasons, every businessman knows what information is shared between a client and consultant is not shared with friends, family, or other clients.

Misconception #4: “I don’t work with young people because they promise you the world but always under deliver. They’re just inexperienced.”

Answer: Young consultants actually under promise and over deliver (which isn’t a bad trait) but they do tend to “shoot themselves in the foot” by overdoing it. Often, we’re so excited to have acquired a client, we’ll do anything to keep them. We start waiving costs and adding incentives to work with us, which in the end proves to be unnecessary. Why?

Our talents and technical skills are so advanced from that of seasoned professionals that our work often speaks for itself. We tend to dabble in varied fields, so we can offer insight on a myriad of problems our clients may face. I have a client who refers to me as her company’s Target, because I can help her with any of the company’s marketing, graphic design, photography, and clerical problems.

If you’re a young consultant reading this article, remember to stay positive and when faced with difficult prospects, keep your mind focused on your long term goals. The prospect may lead to bigger and better opportunities. Don’t ever be ashamed of the fact that you don’t have all the answers. Even seasoned professionals are occasionally stumped by a client request. Author George Iles said it best: whoever ceases to be a student has never been a student.

Christine Epps is the Owner of Maryland’s premier retail marketing firm, Epps Consulting. She works with many independently owned boutiques and also writes about Baltimore fashion for the Examiner. Visit eppsconsulting.com to learn more about her company.

Top 5 ways to have a greener business meeting

The top five ways to have a greener business meeting — great green business meeting tips from Planet Green. The point about telecommuting is powerful. Back when I worked for the federal government, I was aghast at all the one-day meetings for which top executives flew in. Going 3,000 km for a meeting you could have in person? Yikes! I just never bought in to the idea that they needed to see each other in person to communicate effectively and bond as a team. It made me very happy, just a couple of years later, to be doing business with companies in California, Colorado, Georgia and Ontario, even though I was in my home office in Vancouver. I never seemed to have trouble maintaining those relationships, even though I mostly communicated by email and only occasionally by phone.

Holiday cards

Okay…seriously…get your holiday cards out. You’re running out of time. Even if you have no stake in the holidays, this is a prime marketing opportunity to thank your clients for their business over the past year. If you want to avoid the holidays all together, consider sending out New Year’s cards. I did this last year. People aren’t expecting to hear from you in January and so it’s a great way to stand out from all the holiday mailings. In fact, many people called to thank me for the cards and to talk about their business plans for the coming year. If I didn’t have such an interesting campaign set up for this year, I’d be doing New Year’s cards again. (I’ll be talking about my holiday mailing campaign soon, but not till I’m sure all my clients have received theirs!)

Related to holiday cards:

 

Finding the energy for a second job or side biz

A second job may sound a bit over the top. I mean, if you’re working at a day job, how could you possibly have time for a second job or a side business? Well, here’s a secret.

The average US resident spends 2.6 hours a day watching TV, for a total of 18.2 hours a week. What if you put just half that time into working at a second job or side business? And that time watching TV doesn’t even account for time spent surfing the web, chatting on the phone, puttering around the house and so on.

I’m not suggesting that people cut out their leisure time. But, if watching TV isn’t paying your bills or putting food on your table or even helping you feel joy and accomplishment, maybe you could make some trade offs.

 

Check out my book on Side Jobs:

 Side Jobs - Second Jobs, Side Gigs & Part-time Businesses Ebook

Happy Birthday to me!

Today’s my birthday. And you know what? I’m NOT working today. I’m taking the day off. I’m hanging out with my kids, my husband and my friends today. I’ll be chatting on the phone with friends and family, but I’m not answering business calls or following up on work email. Nope! Today is all about the things I value most.

And that’s why I became a consultant. I take days off all the time. I work when I want to work — and my schedule is a little out of the ordinary. Sometimes, I hire other people to do the work, while I’m out enjoying life. I can’t imagine going back to the nine to five grind in an office some where. Sure, I work hard and I have responsibilities, but I have a quality of life that I can’t imagine ever giving up. And that’s what makes my birthday so sweet — it’s a day for celebration and I’m celebrating!

Part-time second jobs – a juggling act

This is a guest post by Seth Holden.

Part-time second jobs can seem like an overwhelming possibility. Many people are even embarrassed when looking for a part-time second job. But with 6.5 percent of the United States population unemployed and bad news seemingly coming every day, a part-time second job can help tremendously in achieving your own personal goals, paying off debt and keeping your family financially secure.

Finding a part-time second job

Part-time second jobs can seem like chameleons, hiding from you. But there are many viable ways to find work. Probably the most effective route, if at all possible, is to visit the business you want to work at in person and ask about job openings. You could also walk down a business district or a mall and simply walk into any place of business and ask. There may or may not be a help wanted sign, so don’t rely on just that.

Checking the classified ads in your local newspaper is also a tried and true way of finding a job. There is generally a mix of full and part time opportunities, and many options are flexible.

A part-time second job means many things

Having a side job doesn’t mean having to work the overnight shift somewhere. Check out these ideas for second jobs. Like juggling, having that other job may look hard, but with some practice it can be done by anyone.

Seth Thomas currently lives in New Hampshire. He uses Consultant Journal as his second part-time job. In his spare time he hikes and records little songs, some of which can be heard on his MySpace.

Check out my book on Side Jobs:

 Side Jobs - Second Jobs, Side Gigs & Part-time Businesses Ebook

Holiday cards

As the holidays approach, it’s a good idea to start thinking about how you’ll tie holiday cards into your marketing. My friend Michele shares this experience:

"In November I began thinking about Christmas, a particular holiday I celebrate. It’s not tough to think of it early on considering most retailers put out their holiday wares immediately following Halloween! As I walked past a Christmas card aisle, I contemplated skipping the chore. That is, except for my clients. I believe the holiday season is the perfect time for consultants to market themselves while sending well wishes to their clients. That being said, I had become increasingly uneasy about singling out Christmas considering so many people don’t celebrate it. Even “Happy Holidays” didn’t seem appropriate enough.

In an effort to not offend, I decided on some fairly generic cards. They simply had an illustration of skaters and the words, “Cool Season, Warm Heart”. I wrote a personal message to each of my clients, wishing them health and prosperity for the New Year. This approach was so well received that clients thanked me for my thoughtfulness. I’ll be sure to send out New Year’s cards next season!"

Great idea, Michele. With the birth of my baby and all the work I had last year, I actually send out "Happy 2008" cards in January. It worked well, because they landed on client’s desks when people were in a work mindset. I actually got a couple of calls from clients who wanted me to send in proposals. So $15 in cards and postage went a long way.

Related to holiday cards

Top 5 credit crisis questions

Via Credit.com, here’s a top 5 list of credit crisis questions. Although they recommend setting aside three to six months of expenses in an emergency fund, I tend to be a bit more conservative. I recommend six to nine months of expenses — but I do emphasize that we’re talking about basic expenses and not your restaurant, Blackberry with Internet or vacation expenses and so on.

Trying to deal with the credit crisis?

 

 

 

 

 

Clients want work for free? Say no.

Clients want work for free? If you comply, you’ll be working on spec. And, as I say in my guide to setting consulting fees, you don’t want to be working on spec.

If you’ve got people asking you to do work for free, ask yourself why going along with it would help your case. If clients aren’t certain you can do work worth buying, why would it help your cause to do the work for free? It just confirms their suspicions!

Consulting might be better than a raise

Consulting may be the most immediate thing you can do to increase your income, if you already have a job. Previously, I mentioned that consulting can be a rewarding second job that potentially beats the stock market. Well, it may beat trying to get a raise, too.

Let’s say you make $75,000 a year. In a recession, it may be hard to convince your boss to give you even a cost of living increase. But, with inflation rising, perhaps you feel you need five percent to keep pace. That’s $3,750 a year. In an immediate sense, it may be practical to simply do an extra 100 hours of consulting each year at $37.50 an hour (which is a rock bottom rate in my part of the world). Sure, your raises will compound, but it may be hard to get a good raise in this economy. Consulting may be a practical way to get ahead.

Daily fees for a consultant

Daily fees for a  consultant — I was at my entrepreneurs’ group meeting recently, when another consultant mentioned that they typically bill $1500 to $2000 per day. Someone else piped up and said they’d just hired a consultant for much more than that. Several people turned to me and asked if those were typical daily fees for a consultant.

Well, it depends. A freelance poetry editor probably doesn’t make as much as a financial services industry wealth management consultant. Rates vary from industry to industry and by market to market. And some people need to bill for preparation they do in advance of being hired by the day, whereas others start the meter much earlier. Still, I go over some strategies for setting your rates in my Consulting Fees Guide, if you’re looking for specific ways to set daily fees for a consultant.

Second job delivers better than stock market

A second job may beat investing in the stock market. Yup, you heard me right. Let’s say you pick up a side job at $8 an hour and you work eight hours a week. By the end of a year, you’ll have earned $3328 from your second job. Now compare that to the stock market.

ROI from a second job

If you invested $66,000 and got a consistent rate of return of five percent, you’d match the returns from that second job. You might be in a better tax situation, but let’s not consider that for a moment. If you don’t have a magic way to put $66,000 in your pocket right this moment, a second job may be the best option you have for increasing your cash flow.

Second jobs add up

And what if you find a second job that pays more? For example, when I started consulting more than 10 years ago, I was able to get jobs for $35 an hour. Most entry-level folks I know are making around $50 now. But let’s just use $35 for our calculations. Let’s say you pick up eight hours of consulting work at $35 an hour every two weeks. That’s $7280 a year and you may be able to write most of it off, depending on your home office expenses.

I’m not saying you should give up on the markets. Heck, I’ve got money in the markets. But a second job, especially a high paying one like a consulting business, may deliver great financial returns, depending on your unique situation.

Check out my book on Side Jobs:

 Side Jobs - Second Jobs, Side Gigs & Part-time Businesses Ebook

Related to second jobs

 

Consulting fees – pricing by the project

Pricing your consulting fees by the project can help you connect with potential customers. Many customers like to know that there’s a cap on what they’ll be spending. Do you like taking your car to a mechanic and not having a clue whether it’s going to be $100 or $1000 until you go to pick up the car? Of course not!

By pricing your fees by the project, you can help reassure potential customers. And this can help them get ready to buy, because you’ve reversed some of the risk. Of course, figuring out how to price by the project takes some strategy. (I go into this in my Consulting Fees Guide.)

One in three New Yorkers has a second job

New Yorkers depend on second jobs to help them pay the bills, according to research from Siena College. About 34% of NYC residents rely on second jobs and overtime.

New Yorkers aren’t alone. Here in Vancouver — one of the most expensive cities in the world — most of the people I know have held second jobs at some time or another. Most of my friends with regular day jobs also do consulting on the side.

What’s it like where you live?

Related to second jobs

Barack Obama’s top 5 tech promises

Via TGDaily, here’s a list of Barack Obama’s top five technology promises. Throughout the campaign, I was intrigued by how the Obama team used the ideals of Facebook technology to rally the troops. Or, rather, Obama’s team delegated the power to the troops, enabling the troops to build the cause. Many people have talked about Obama’s Facebook presence, but I was more intrigued by his friendship with Chris Hughes, one of Facebook’s founders. Hughes left the social media company to join the Obama campaign team and helped foster social marketing strategies in both offline and online ways.

Incidentally, if you’re on Facebook, consider joining the Consultant Journal page.

How to set fees for independent contract work

How to set fees for independent contract work — I’ve had a flurry of requests for information on this topic. With the way the economy is right now, many people are interested in figuring out how to price their contract work. If you’re one of them, take a look at my post on setting consulting fee rates or, for something more in depth, check out my Consulting Fees Guide. Month after month, those are the most popular pages on this site, so I know many of you are keen to figure out your rates.

Do you have any general questions about setting rates?

Vote today, if you’re in the US

Just a quick nod to our US readers, who are in the midst of their presidential election. No matter what your politics, get out there and make use of democracy. Without people, democracy is just a word. Exercise your right to vote. Many people in this world don’t have the right to vote.

5 tips for digital holiday cards

Holiday cards can help market your business. But they involve a lot of paper and postage. Many small businesses have turned to digital options to help cut costs and waste. Still, an email may not have the same impact as a paper card. Here’s how some businesses mitigate the effects of boring email greetings:

  1. Hire a graphic designer. If you’re planning to send a lot of cards, you might want to invest in the services of a graphic designer. A designer can create an HTML or PDF-based greeting card — or even a webpage.
  2. Send text emails, but direct people to a web-based page with graphics or even music.
  3. Record a video greeting and make the link available via email.
  4. Put together your own graphical email greeting — or hire a student to help.
  5. Email your clients individually and note that you’ll be donating your usual holiday card costs to a charity. (Then make the donation!)

Related

Happy Hallowe’en – but get those holiday cards!

Happy Hallowe’en! Enjoy! But, tomorrow is November 1st. So start getting ready with those holiday cards. if you want personalized holiday cards or discount Christmas cards, you need to get moving. Holiday cards are a great way to remind clients you’re still alive — and to thank the clients who keep you going. So, party tonight, but get those cards tomorrow!

Related to holiday cards and greeting cards

Business holiday cards – mail ‘em now

New covers for my guides

Several great things happened to me yesterday. I’ll share a few of those things with you now.

My graphic designer delivered new covers for Discover Your Inner Consultant and Consulting Fees: A Guide for Independent Consultants. I think these new graphics do a much better job of conveying the content you’ll receive. I’m working on imbedding the graphics into the actual PDFs now.

I also received a parcel yesterday. My sample print copy of Consulting Fees came in the mail. I’m really impressed with the print copy. Now that I have the new covers, I’m going to work on establishing print versions of my materials.

Finally, I’m getting ready to launch a new course called Become a Consultant: How to Make the Leap. Many of you have asked me for help in getting your consulting businesses off the ground. I hope to soon have a full course available, just to help you with this process. In the meantime, take a look around the blog — I’ve got 1,100 posts now.

Thanks for your oingoing support. I’m thrilled to be able to help so many other people with their consulting dreams.

What spooks you in your business?

Well, it’s just about Hallowe’en…a time for spooky things, tricks, ghost, goblins and all that jazz. What spooky things could happen in the world of independent consulting?

For me, the scariest thing would be having no network. Consulting is very much a people business and it really helps to have a strong network of friends, colleagues and prospects. In fact, most of my work comes through referrals.

What would scare you?

Related

Think you could be an expert?

New to consulting or not, many people have a hard time thinking of themselves as experts. "Expert" sounds so serious. But, really, to be an expert, you just need to know more than someone else.

Think about it. Many of us have family or friends we call on when our computers are on the fritz — and some of us are those family or friends! For the most part, these people aren’t world class computer tech support experts. They’re simply people who can help us out of a jam. They’re people who know more than we do. (Except when it’s my family calling me, in which case I’m the expert., apparently.)

To be a consultant, you need to position yourself as an expert. If you haven’t already, sign up for my Become a Consultant newsletter and get a free list of ways to jumpstart your expert status. See the top right of this page.

5 tips for choosing a mentor

Working with a mentor can help you move ahead in your business and personal lives. Via Enrichr, here are five tips for choosing a mentor.*

I thought it was gutsy to say that sometimes you need to pay for access to a mentor:

Pay for your mentors. If you have the resources there are many more accomplished people willing to mentor you for the right price. Choosing your mentor doesn’t mean the mentor has to benefit you altruistically. The best fit is a relationship where both find the relationship advantageous.

It’s true — sometimes you do need to pay for access to a mentor. Although I’m one of the most frugal people around, I have been known to pay for access to coaches and other professionals. And, really, when you take a course, you’re doing the same thing.

What tips would you give for choosing a mentor?

*rapidly decaying link

Related to mentors:

The value of mentors

Do you have a mentor? Greats like Richard Branson, David Beckham, Mozart and Oliver Stone have drawn from the influence of mentors. By working with a mentor, you can tap into the proven experience, network and knowledge of someone established in your field.

If you don’t have a mentor, try approaching someone whose work you admire. In most cases, the potential mentor will be flattered. Even if they’re too busy to take you on, they may be able to point you in the direction of another potential mentor.

Over the course of my career, I’ve worked with several mentors. Along the way, I’ve also mentored several people. I get a lot of satisfaction out of helping other people along — and in helping give back to the community that helped me get going.

Do you have a mentor?

Christmas jobs – starting looking now

Christmas jobs — whether you’re self-employed or working for someone else, it’s not unusual to pick up a seasonal job over the holidays. But, if a "Christmas job" is on your holiday wishlist, start looking now. The best jobs go fast and, with the current economy, employers may be a bit choosier than we’ve seen in recent years.

Why get a Christmas job?

Many people opt for seasonal jobs, since they get discounts. Still others want to soften the blow of holiday bills or pay down existing debts. I know many consultants who pick up second jobs as a way of managing fluctuations in earnings, since there tends to be a bit less consulting work in the last couple of weeks of December, at least here in my part of the world.

Easy, sure-fire way to meet 400 people

Succeeding as a consultant becomes easier when you know a lot of people. Those people can become clients, provide testimonials and references, and give referrals. But how do you build up a strong network? Here’s an easy, sure-fire way to meet 400 people a year.

Go to one event per week. Spend two hours at the event. Every 15 minutes, have a real conversation with someone new. By the end of the year, you’ll have met 400 people.

Of course, to include those people in your sphere of influence, you need to connect in a meaningful way. That means you have to do more than just "work the room". You need to learn a little about the people you meet — and you need to follow up. And following up means more than just sending a boilerplate email. You should work at sending an email that addresses some of the topics you discussed — or that includes information that can help them. Above all else, avoid making a sales pitch, unless you were invited to do so.

Related:

Facebook page now available

You’re invited to join the Consultant Journal Facebook page. I’ve set up a page on Facebook, since it will provide a chance for members of this community to connect. I frequently use Facebook for networking and I’ve done business with people in that same network. It’s been a valuable tool for me and so I’m trying out a Consultant Journal page to see how that goes.

Top 5 big hairy mistakes

Via Youtube, I found this quirky (and now gone) video on the top 5 big hairy mistakes in online, home-based business.

Note the comment about the mistake of being trapped in “getting ready to get ready”. Although I believe that, if you fail to plan, you plan to fail, there comes a point where you just need to get out there and start your business. Spending unreasonable amounts of time in planning and thinking about your business won’t get your business going. You have to take action.

People listen to higher fee advice

People are more likely to follow advice from expensive consultants, according to a post forwarded to me by Tony.

It makes sense. People who charge higher fees are simply perceived as "better". When I was starting out, I thought it made sense to charge the bargain rate of $35 an hour for my consulting. I soon realized that this made me look junior. In fact, the higher I’ve raised my fees, the more clients I’ve landed. (Granted, I do have to follow up on the promise of those higher fees, in order to keep people coming back. It wouldn’t be very efficient to build one-time relationships.)

Related:

5 reasons to send business holiday cards

It’s not December, but I’m already thinking about business holiday cards. Whether you celebrate holidays during December or not, sending an annual greeting card can help market your business. Here’s why — business holiday cards will help:

  1. Generate goodwill. It’s a great way to greet your clients, vendors and other contacts in a non-salesy way.
  2. Brand your business. By including your logo, slogan and business name, you reinforce your brand.
  3. Market your services. Send holiday cards to "dead" clients and perhaps revive your business. After the holidays last year, I got a request for a quote — and my client specifically mentioned that the card reminded him it was time to start working on marketing plans for the New Year.
  4. Offer gratitude. With a holiday card, you can say "thanks" for help, business or other positive points.
  5. Break through the noise. Whereas a direct mail campaign may or may not be read, most prospects and clients will open a holiday greeting card.

Investigate business holiday cards now and you’ll beat the rush. By starting today, you’ll have enough time to order personalized cards — they’re not very expensive anymore.

Related to business holiday cards

Five ways to get the maximum from your mentor

Via SHEOBlog, I found this list of five ways to get the most from your mentor. I love that Jen encourages people to challenge their mentors. If you find yourself in the occasional position to challenge your mentor, it shows your mind is working!

I’ve had a number of mentors over the years. Sometimes, it makes sense to follow all of your mentor’s recommendations. Other times, it makes sense to give feedback. That’s because mentoring is a relationship, not a dictatorship.

Postcard giveaway winner

Congratulations to Callie, who won the postcard printing giveaway. Hope you have a good time using up your 500 postcards!

I wish I had the opportunity to give postcards to everyone who entered. It sounds like many of you have some great ideas for promoting your businesses. If you need more ideas, see my past articles on marketing and lead generation.

Postcard giveaway ends tonight

My postcard giveaway ends tonight at 10 pm Pacific. You’ve still got a few hours to enter. Via Uprinting.com, I’ll be awarding one lucky person 500 self-printed postcards. It’s pretty simple — just post a comment explaining how you would use the postcards. I’ll be making a random draw and announcing the winner later tonight. You don’t have to be fancy in your explanation of how you plan to use the cards, but it makes it a little more interesting.  Details here.

When you can’t close deals

Closing deals is a basic sales skill. If you are having problems closing a deal you need to figure out why. Then you need to pinpoint the problem and fix it.

For example, if you have a tendency to speak in a monotone or speak too fast, you may be undermining your own effectiveness. So, practicing a better "sales voice" could prove helpful as skill in communicative ability is often closely associated with closing a deal.

Verbal delivery is just one example. You may have different things you need to look at. They key is to discover the flaws and work on improving them. 

If you are having difficultly determining your flaws,you might ask a trusted friend or colleague. You might need to role play to do this. If your friend is honest and trustworthy, they’ve constructively point out your errors. They may even be able to give you some pointers.

Of course, in order to do this you need to be open to criticism. Being overly defensive will eliminate the ability to improve. Instead, be open-minded about your flaws and seek to correct them.

Related to closing a deal

You can still enter the postcard giveaway

Yesterday, I announced a postcard giveaway, sponsored by UPrinting.com. I’ve received a few entries so far. Remember: you only have till 10 pm tomorrow to enter. It’s a random draw, so everyone has a chance at winning, no matter how you plan to use the postcards. If you live in the US or Canada and you win, you’ll receive free shipping.

Details here.

How to close a deal

Closing a deal is critical to success in sales and business. If you are not closing deals then you will not be generating revenue! So take a little time to learn the basic sales skill of closing a deal.

First, make sure the person who is being pitched clearly understands your service. If the client is not sure about what he or she is buying they probably will not purchase. This is why you need to paint a clear picture of the service. Asking the buyer if there are any questions or concerns can eliminate this problem. Of course, clearly and concisely answering the buyer’s questions helps, too.

Stress the value of the product. Explain the benefits the service provides. If the customer feels that the product meets their specific needs then they will be more inclined to purchase. After all, if the product is not fulfilling a need ,what value is it?

Be enthusiastic and positive. If you are not enthusiastic, the client certainly won’t be either! Getting a client enthused is a surefire way of closing a deal.

Also, you need to weed out people who do not have an actual interest in purchasing. Some people will go through the sales cycle, but never make a purchase. But you can identify these potential clients. Ask for an alternate phone number or an email in case you need to get a hold of them. If they "hem and haw", move on.

Of course, that’s not all you need to do to close a sale. But the above tips should help you get started.

Related to closing a deal

 

Postcard giveaway contest!

The online printing company UPrinting.com has offered to sponsor a special contest for Consultant Journal readers. They’re offering 500 free 4×6″ postcards to one lucky reader.

The winner of the postcard printing contest can choose any of Uprinting.com’s stocks, including the eco-friendly 13pt recycled cover stock, 14pt gloss cover or 14pt matte cover. Shipping is included if you live in the United States or Canada — if you’re elsewhere, you’ll need to pay for shipping.

If you’d like to enter to win, simply reply to this post with a story telling me how you’ll use the postcards if you win. Be sure to put your email address in the designated space, so that I can get in touch with you. I’ll be choosing one lucky winner via random draw.

The contest closes at 10 pm Pacific on Wednesday, October 8th, 2008. Void where prohibited. I’ll forward the winner’s details to UPrinting — they’ll be handling the logistics of the prize.

Update: this contest is now closed. Congratulations, Callie.

Becoming a freelance writer – contracts

This is a guest post from Laura-Jane Koers. She’s been writing a series on becoming a freelance writer.

Finding Bigger and Better Contracts

With a number of freelance writing gigs under my belt, I was on a quest to land bigger and better contracts.

I applied for a number of projects, and the learning curve was steep.

What Works and What Doesn’t

I quickly learned what works and what doesn’t. For me, honesty is key. I don’t pretend that I’m something that I’m not. I’m relatively new to this business, and I’m not afraid to admit it. In fact, I highlight the benefits by bringing clients’ attention to my fresh ideas and enthusiasm.

I’ve also realized that freelance writing can be a competitive business. I’m competing with thousands of people from around the globe! So If I’m not qualified or well-suited for an advertised position, I move on. I focus my time and efforts on jobs that I know I’ll be great at. I’ve learned that I have desirable skills that people will pay for. I know where my skills lie, and I seek out clients that are looking for these skills.

I achieve the best results when applying for jobs that truly interest me. And if a client advertises for a funny and creative writer, I do my best to be funny and creative in my response. I take risks that don’t always pay off–but when they do, the success is that much sweeter.

I also seek out like-minded clients. When I’m reading a blog or online magazine for fun in my free time, I often come across businesses that could benefit from my skills. I’ve been using using 21st-century cold-calling techniques: cold-emailing. I’ve been amazed at the positive responses I’ve had. I’ve discovered that often business-owners are desperately looking for help but they don’t know where to start.

Looking Back

I started out with a few small writing jobs that came from connections in my social network. Since then, I’ve landed the majority of my positions through online job postings. These days, I’m focusing on my existing contracts and on seeking out clients that I really want to work with.

Now that I’ve got my foot in the contracting door, I’ve had businesses come to me for advice. I’ve had phone calls where I’ve been asked point blank, “How much would you charge for this project?” and I’ve had to scramble to come up with the right number. I’ve got a lot of projects on the go. And, come to think of it, I’ve achieved my goal of becoming a freelance writer. Excuse me while I have my very own wow moment

There’s still room to grow. But for now I’m happy to bask in the fact that I took a risk to follow my dream of writing for a living, and the risk has paid off.

Laura-Jane Koers is a writer currently living on Prince Edward Island, in Canada. Since writing this article, she has gone on to become co-founder of Brightflock Consulting.

Give me one good reason

On Fridays, I usually offer up a top five list. Well, today I’d just like to give you one thing: one good reason for becoming a consultant.

This afternoon, I’m taking my kids to a neighbour’s birthday party. Yup. It’s Friday and I’m going to be eating cake, wearing a party hat and playing games with my kids and their friends. And I won’t be skipping out of work or taking precious holiday time to do it. Heck, for the morning, I’m planning to play with my kids, too.

And I’ll let you in on a little secret: I do this all the time.

Sure, I sometimes work odd hours, but I do so on my own terms. And the reward is that I can spend time with my kids when I want.

When I didn’t have kids, I spent this time going for walks, shopping, meeting friends, studying, doing hobbies and so on. That’s the beauty of being your own boss. As long as you’re accountable for the decisions you make, your time is your own.

Second jobs and recession proofing your life

Picking up a second job or side job — or starting a side business — can be a good way to recession-proof your life. Via NPR, here’s a list of ways to help yourself weather the storm of a recession. They didn’t specifically mention second jobs and side businesses (such as consulting), but I’ve talked before about how second jobs can help you get ahead. There are tons of reasons to have a second job, especially when the economy is looking a bit shaky. (Or incredibly shaky.) I’ve given examples of side jobs, but I have to admit that consulting is one of my favourite ways to generate extra money. I don’t know of any other side jobs that pay as well. Do you?

 

Check out my book on Side Jobs:

 Side Jobs - Second Jobs, Side Gigs & Part-time Businesses Ebook

The secret formula for business growth

Ever feel like you’ve got the weight of the world on your shoulders? Sometimes, consultants feel like they’re carrying a heavy load. After all, if you’re in business for yourself, you may be trying to do everything from sales to accounting. But there’s a secret formula that can help you.

It involves a little math. I won’t apologize for that. But you don’t really have to understand the math to get the point. A guy named Metcalfe worked out this law. You just need to get the idea — not the math.

The secret formula involves relationships. If you’re an independent consultant and the only person in your business, you have no relationships. There’s just you.

But, if you start making connections with other people, you’ll tap into the exponential power of relationships.

Let’s say you make a connection with 12 other people. You could meet these people at a personal party, a business networking event, a tradeshow, a course, a conference, a coffee shop – anywhere, really. It doesn’t take much to meet one new person a month. And, over the course of a year, you introduce each of those people to each of the other people.

You plus 12 other people. How many relationships is that?

78.

What? How did you go from yourself and nine other people to 78 relationships? How did meeting 12 other people and introducing them to one another expand your relationship power to 78? That’s almost eight times as many people as you met!

Well – you can skip this part, if you don’t like math, but the formula is n*(n-1)/2 = relationships.

You’re n.

In our case, there are a total of 13 people. You plus the other 12. And so 13*(13-1)/2=78.

So, from lonely you, we’ve grown to 78 relationships.

But what if you met two new people every month for a year AND introduced each of those people to the others by the end of the year? So, over the course of a year, you meet and introduce 24 people. So we’ve got 25 people in the equation.

By the end of the year, you’ll have built 300 relationships.

Wow.

And that’s assuming that none of those people introduce you to anyone outside that small network.

In my next post, I’ll look at what power you gain from the people those 24 other people know.

(If you don’t want to miss the post, click to subscribe to the RSS feed.)

Related

5 reasons to create a startup

Startups…consulting tends to be a fairly low risk business endeavour, but sometimes it paves the way for other opportunities. According to this list of five reasons to create your own start up, an article from the Social Science Research Network says that:

…entrepreneurs who succeeded in a prior venture (i.e., started a company that went public) have a 30% chance of succeeding in their next venture. By contrast, first-time entrepreneurs have only an 18% chance of succeeding and entrepreneurs who previously failed have a 20% chance of succeeding.

So, although most consulting businesses won’t lead you to a $1 billion business sale, the process of starting your own company may help you build a foundation for future success. I realize the quote above references entrepreneurs who take their companies public, but the lesson is the same. Building a business — even a small independent consulting business — teaches you core business management concepts. That’s because independent consultants need to wear many hats — marketer, sales executive, administrator, accountant and so on.

What has starting a consulting business helped you learn?

Related

Should you charge PayPal fees?

I recently got bids from subcontractors. One of the subcontractors noted that, if I wanted to use PayPal for payments, I’d need to pay an additional five percent. Five percent of the contract! Yikes!

For a $100 contract, that would be $5. For a $500 contract, that’s $25. You get the idea. Ouch.

But that’s not the thing that stuck out for me. It’s that applying a PayPal charge violates PayPal’s user agreement:
4.7 No Surcharges. You agree that you will not impose a surcharge or any other fee for accepting PayPal as a payment method.

Even though the potential subcontractor had the best bid, I decided not to hire her. It’s up to her to take on the cost of doing business. And she obviously doesn’t read contracts very closely.

Becoming a freelance writer – part 3

This is a guest post by Laura-Jane Koers, who recently leaped into the world of freelance writing. See her series on becoming a freelance writer.

Once I confessed to the world that I wanted to become a freelance writer, the world responded. (Well, my world responded, anyway!)

My family and friends helped connect me with a number of writing contacts. And I’m thankful that I had the courage to ask for my friends’ support and help.

Still, I couldn’t rely solely on good recommendations; I had to stand on my own. So I drafted emails, made phone calls, and wrote proposals. And then I drafted more emails, made more phone calls, and wrote more proposals!

Landing My First Contracts

After a number of maybes and thank-you-buts (and even more no-answers-at-all), it finally happened. My connections led me to a contract writing position for a large online site. Then, a suggestion from a friend led me to sign on as a contributing writer for an online magazine.

With a few contracts in my growing portfolio, my confidence grew in leaps and bounds. I felt ready to hit the big leagues.

Getting Serious About Becoming a Consultant

I started scouring the internet for freelance job postings, and I found some great active websites.

I also pushed myself to network in my local community. I contacted my Chamber of Commerce because they can be great places to connect with business owners in a social but business-friendly forum.

I also pushed my boundaries when it came to networking. For example, a freelance journalist in my local area invited me to join a book club. Being a homebody, my initial reaction was to gracefully decline. But then I got to thinking that perhaps I needed to push myself to network with like-minded people. Book club, there I went, and the networking in my local community began!

Once I started networking and getting serious about applying for contract jobs, I knew it was only a matter of time before I started to see real results.

Stay tuned for part 4 next week. Laura-Jane Koers is a writer currently living on Prince Edward Island, in Canada. Since writing this article, she has gone on to become co-founder of Brightflock Consulting.

Why you need a contract

You want to sign a contract?! Why on earth do we need to sign a contract? Can’t we just do this on a handshake? Can’t I trust you?

Well, you could but both parties are leaving themselves wide open for potential hassles that a signed and agreed upon contract would eliminate. If you feel nervous asking your clients to sign a contract, consider these points:

  1. Contracts provide a description of responsibilities. Rather than suffer through the confusion of wondering what each party’s responsibilities are, you’re better to have everything in writing. This will help avoid confusion or disagreement.
  2. Contracts bind parties to their duties. It is incredibly disruptive if one party attempts to back out of an agreement. A contract will bind the parties to the previously defined description of duties eliminating this problem.
  3. Contracts can establish a time frame for duties. If you need work performed and performed within a certain time frame a contract binds the party to that time frame. As a consultant, you might want to require the other party to provide adequate and timely access to key personnel, for example.
  4. Contracts can secure payment. No one likes to be stiffed for work performed and a binding contract provides a written legal document establishing an agreement to be paid for services rendered.
  5. Contracts provide recourse when the relationship falters. If the relationship between the contracted parties deteriorates, a contract outlines the previously agreed upon steps required for dissolving the relationship without punitive measures.   

Now, doesn’t that sound better than dealing with the chaos that can erupt when a handshake deal falls apart? Stick with a contractual agreement — it can eliminate a lot of hassles.

(Note: I’m not a lawyer and this isn’t legal advice in any way, shape or form. If you’re looking for a lawyer or a contract, I recommend USLegalForms.

Sponsor me in Run for the Cure

Those of you who’ve been following my newsletter (subscribe above right) know that 2008 has been all about expanding my comfort zone. I’m doing all sorts of things that I wouldn’t normally do. Well, as part of that, I’m taking part in the Run for the Cure on October 5th. Proceeds go to the breast cancer foundation. Last year, on that weekend, I was recovering from a C-section and celebrating the birth of my second son. I’ve made a lot of changes this year and have had one of the best years in my business, too.

I invite you to sponsor me in Run for the Cure. No amount is too small! If you’ve been looking for a way to give back to Consultant Journal, this would be a great gesture. Canadian donations of more than $20 receive a tax receipt. But for the rest of you — and most of you come from outside Canada — this is a great way to help cure breast cancer. Thanks for your support — through reading this site and through your donations.

Laura-Jane becomes a freelance radio columnist

I’ve featured three pieces by Laura-Jane Koers, the young woman who’s taken a huge leap into the world of freelance writing and rural home renovation. She’s working hard at expanding her comfort zone and she recently landed a one-time spot on CBC Radio’s Definitely Not the Opera. Hurrah for Laura-Jane! You can listen to her story at 5:38 on the DNTO podcast.

Becoming a freelance writer – part 2

Becoming a freelance writer — here’s part 2 in a series on becoming a freelance writer by Laura-Jane Koers. My hard drive failure delayed publication. Since we last heard from Laura-Jane, she’s been in the recording studio for CBC Radio! That’s Canada’s public broadcaster. Laura-Jane will appear on Definitely Not the Opera this Saturday at 1 pm Eastern. Wow. Talk about seeing your dreams come true!

After committing to becoming a freelance writer, I wasn’t sure where to start.

Enthusiastic,  I wrote a few sample articles. I obtained a few contract templates and revamped them to suit my needs. I created a professional website to showcase my portfolio. Yes, getting organized was simple. But getting my first paid writing contract wasn’t quite as easy.

Here at Consultant Journal, Andréa has written about how she became a consultant. She started with one contract, and soon found herself moonlighting as a marketing consultant until she had enough contracts to transition to full-time consulting. As she writes, “You don’t have to take on the world. You can do it one step at a time.”

One Step at a Time

Andréa’s motto served as my inspiration. Rather than feel overwhelmed with the big picture, I focused on landing my first small contract. Be it a magazine article or writing online content, I wouldn’t rest until I had a contract in place!

In my research, I came across an online bidding site that allows writers to compete for writing projects. So I bid on numerous small projects–with no success. And when I happened upon an online writers’ forum that chastised bidding sites as “hideouts for nervous writers who are too afraid to put themselves out there in the real world”, I felt embarrassed. Reading that opinion felt like it was written specifically for me. Of course I was afraid to put myself “out there”–who isn’t when they’re just starting out in a new career?

Coming Out

And so I vowed to unmask myself in “the real world”. No longer lurking anonymously, I started coming out of my shell. Taking a courageous deep breath, I let friends and contacts know that I was embarking on a new career path.

And, wouldn’t you know it, my friends and family supported me. A friend of a friend was an editor for an online magazine and offered to help me get started. My aunt’s boss was looking to hire a writer on contract. My neighbour’s sister worked at a newspaper. And on it went.

Once I’d yelled “I want to be a writer!” from the rooftops, I felt that it couldn’t help but come true (with a lot of hard work and a little luck, of course)!

See part 3 on becoming a freelance writer. Laura-Jane Koers is a writer currently living on Prince Edward Island, in Canada. Since writing this article, she has gone on to become co-founder of Brightflock Consulting.

5 reasons to use weird business cards

Via ezinearticles, here’s a list of the top 5 reasons unconventional business cards work.

One of the best business cards I’ve ever seen was for a software company that based its technology on mathematics related to cubes. When you pressed down on the sides of the business card, the die cuts helped the paper fold into a cube. This reinforced the idea and gave people a reason to hang on to the card, perhaps to show their friends. In fact, I only recycled the card a few weeks ago, even though I met with their marketing department around 2002.

Related to business cards

When to terminate a contract

Perhaps you avoid using a contract because you believe that a person’s word is more valuable than any piece of paper. Well, perhaps that works for you. But what if you want to get out of a deal and you’ve only got a verbal contract? How would you defend yourself, if the client sued to get you to deliver?

Despite all best intentions, sometimes consultants and clients have a hard time working together. For example, if a consultant is repeatedly ignored or challenged on advice, the consultant and the client may not be meant for each other. If the differences can’t be worked out, then it may be wise to dissolve the professional union. Trying to salvage a faulty relationship can be time consuming and costly. 

But how do you get out of a contract? It’s not as complicated as you might think. Your written contract should outline the process for terminating it. Depending on where you live, you may be able to dissolve a contract simply by having both parties agree — that’s called mutual dissolution. The two parties agree to go their separate ways and render the contract void. Where most people err, though, is that they agree to dissolutions orally. Instead, it would be best to have something in writing, proving both parties have agreed to dissolve the contract. This can avoid any potential challenges to the dissolution that may arise at a later date.

(By the way, I’m not a lawyer and this is not legal advice.)

Related to contracts

What you need to know about contracts

If you consult, freelance, do work for hire or otherwise provide services, you should be using a contract.

Why use a contract

There are many reasons for two parties to enter into a professional services contract. The main reason would be to establish rules and parameters. Without a professional services contract, a venture might descend into disorganization or confusion. To avoid this, a professional services contract clearly defines all aspects of the work to be performed. Of course, the contract needs to be comprehensive in order to be effective.

What to include in a contract

  • A contract should include all the necessary information required for the performance of the services. This includes the names of all parties involved and duties to be performed. For example, a contract for cleaning an apartment could detail what specifically needs to be cleaned as well as what does not. This will avoid any confusion as to what specific services are to be provided.Also, the time frame for the completion of services should be detailed. This includes a commencement date and a time frame for completion. This ensures that the job is properly performed within a reasonable time frame. When the timeframe for completion is open ended the job itself may end up dragging on indefinitely. This can often undermine the quality of the job which is not desirable.
  • And, of course, the actual fee that will be paid should be defined along with the specific terms of payment. Detailing the time frame payment will be provided is helpful as well. Clearly, the person providing the services wants to be paid for the work performed. When payment issues are in dispute it is not uncommon for people walk off a job. That would obviously be a disastrous situation. Plus, even if payment issues are straightened out, bad will among the parties may remain. This can undermine the performance of the job and is not beneficial.
  • But, sometimes despite all the best efforts of both parties things just don’t work out. So, when the relationship falters, it may make more sense to terminate the contract. When two parties can not work together, despite communication attempts, it doesn’t make sense to continue the relationship. So, a services contract should also include criteria for dissolving the relationship if needed. Heck, you might want an escape clause like that, just in case you get sick or end up in the hospital.

A clear professional services contract explains all the job and relationship, leaving no room for error. It gets rid of ambiguity and makes it easier for people to understand roles and responsibilities.

Later this week, I’ll be talking about what you can do if you want out of a contract.

(By the way, I’m not a lawyer and this is not legal advice.)

Related to contracts

Five reasons to back up your hard drive

I usually post a top five list on Fridays. Well, I’ve been very busy with a hard drive crash that took place last weekend. My poor Acer laptop finally kicked it. The hard drive died. And it took a little piece of me with it!

Well, it’s not so bad. I back up my hard drive on a fairly regular basis. And I was able to pull my Outlook file off the hard drive before it died.

I’ve lost data before. It’s awful. It’s not a life trauma, but it isn’t exactly fun either.

Five reasons to back up your hard drive

  1. Losing data may disrupt your work.
  2. Trying to crack a dead hard drive can be expensive or time consuming.
  3. Losing access to your calendar and email may make you look bad in front of clients.
  4. Stressing over everything is not productive.
  5. Shopping for a new system takes enough time — trying to make up for all the work you lost would be even worse.

Check your email less often

How often do you check your email? A lot?

Stop checking your email every time a message comes in. Start scheduling time to read and respond to email.

Frittering away 15 or 30 minutes several times a day can put you behind schedule. And, most of the time, reading and writing email is non-billable work. So you’re spending time on something that doesn’t even make you money.

Resolve to only check email at key points of the day, or if you’re waiting for a specific message. And, if you must write and read email throughout the day, at least build it into your quotes for clients — or focus on email messages that make you money. Messages that result in lead generation or sales help you make money. But, again, do you need to read and respond all day?

Becoming a freelance writer

Becoming a freelance writer — I’m sharing this guest post by Laura-Jane Koers, who previously wrote about leaping out of your comfort zone. In addition to leaving the West Coast to remodel a house on Prince Edward Island, Laura-Jane has decided to become a consultant and freelance writer. Here’s part one of her story about the transition.

Becoming a Freelance Writer: Embarking on a New Career as a Consultant

I had a normal childhood in most respects. But while my friends had television and Nintendo, my parents armed me with a worn library card and a well-stocked bookshelf. So perhaps it’s no surprise that I’ve always been driven to become a writer.

Choosing a Career Path

Plagued with self-doubt, I tried to ignore my inclination toward making a career out of writing. I did my best to quell that little voice that whispered, “You must write”.

Instead, I went to university and studied political science. After graduation, I worked in a number of offices, all the while telling that little voice to keep its opinion to itself.

But after a decade of non-fulfilling work, I began to question my career choice. Why had I spent ten years ignoring the inner voice that hissed, “You should be writing”? If my life had suddenly come to an end, would I have regretted spending years achieving my boss’ goals instead of my own?

Scared to Take Risks

If a friend had told me that she felt a strong desire to change careers, I would have told her to jump in head-first. I’d have cheered, “Go for it! You can do it!” But when it came to my own career, I was oblivious to the fact that I’d been ignoring my own goals while encouraging others to try theirs. 

Why was I scared to try writing as a career? What was I afraid of? Becoming a writer had been my dream ever since I could remember. I was afraid that if I tried to achieve my dream, I might realize that I wasn’t as skilled a writer as I thought I was. What if I gave writing everything I had, and I failed miserably? Oh, the humanity!

But then I asked myself what was worse, trying to achieve one’s dream and failing, or not trying at all? At least if I tried my hand at professional writing, I had a chance at success. If I didn’t try, my failure was certain.

Taking the Plunge

So there I was. I’d convinced my inner fears that everything would be all right no matter what happened.

I could ignore my inner calling no longer. I owed it to the little voice, and I owed it to myself. But what I didn’t know was how to get started.

See part 2 and part 3. Laura-Jane Koers is a freelance writer currently living on Prince Edward Island, in Canada. Since writing this article, she has gone on to become co-founder of Brightflock Consulting.

How increasing your rates affects earnings

Have you ever stopped to think about how your consulting fees affect your earnings? A while ago, I asked "How often do you increase your rates?" I mentioned that, if you increased your fees by 5% a year for 10 years, you could go from $50 an hour to $81.

How does that affect your annual earnings? Let’s say you were billing 20 hours a week for 48 weeks a year. So you started at $48,000 a year. And you increased your rate at 5% a year. Now you’d be earning $77,000 a year — for working the same number of hours.

And what if you’d increased your rate 6% a year? Now you’d be earning about $86,000 a year. (And you would have enjoyed thousands in increased earnings over the years.)

Have you been afraid to raise your consulting fees? Stop leaving money on the table!

Related

Friday 5: reasons you’re procrastinating

Via Lifehack, here’s a list of reasons you’re procrastinating. I spent some time thinking about this one:

The inability to make decisions also contributes to procrastination.

I don’t have trouble making decisions. (Although, if you’ve ever seen me order from a menu at a restaurant, you might think otherwise.) But I do sometimes have trouble trying to get things "right". So, over the years, I’ve learned to build in opportunities to refine the work I do. I’d rather get it done and make improvements than never finish. I think my strategy comes from starting as a freelance writer. If I’d learned to get every word right in my head before setting out to draft something, I never would have got anywhere. Instead, I just sit down and start writing. Likewise, when I’m doing a consulting project, I spend 10% of my time planning and then I just dive in. Of course, I make sure to revise things before I hand off the final report.

How do you deal with procrastination?

Should you give clients your IM account info?

Several times a day, I chat with friends, family and partners via instant messenger services. I sometimes even chat with clients. But, as a general rule, I don’t give my IM account info to clients.

Instant messaging makes you seem within a client’s arm reach. Whereas they have no idea what you’re doing when you don’t immediately answer a call or email, instant messaging services make you look like you’re *right there*. And that’s a little too close for comfort when I’m juggling multiple clients and trying to get work done.

Still, for my best and most trusted clients, I make exceptions. These are the people who’ve been working with me for years and who’ve shown an ability to respect my time and privacy. They’re the clients for whom I’d wake up in the middle of the night and go help them jumpstart their car. In other words, they’re much more like close friends than clients now.

How about you? Do you instant message with clients? If so, do you "go offline" to avoid interruptions at certain times?

New Consultant Journal store at Cafepress

By request, I’ve created a Consultant Journal store at Cafepress. I’ve started off with a simple consulting joke and the Consultant Journal logo. If you have other ideas, let me know. I try to respond to readers whenever possible. (That’s where the idea for the store came from.)

More ways to find new clients

As much as you enjoy the business of your regular clients you still need to pick up new clients in order for your business to grow and remain stable. But, acquiring new customers can sometimes prove difficult. This is why a few deliberate steps need to be taken in order to boost new clientele.

  1. Use freebies and giveaways to stimulate interest. Offering free samples of reports or articles (even via the mail) can provide customers with a taste of what you offer. This can lead to picking up new customers who may have otherwise passed on your services.
  2. Use business cards. Never underestimate the value of leaving tried and true business cards anywhere you can, including shops, malls, stores, etc. Sooner or later, someone who is looking for exactly what you are offering will come across your card.
  3. Research the market. Figure out what the current marketplace is interested in or else you will never pick up new customers. Always stay up to date on market trends so you can promote your business from a position of power.
  4. Use innovative internet marketing. A website is great but a website with multimedia components such as podcasts, PowerPoint presentations and videocasts can really be an eye catcher. So, make your site high tech in order to appeal to more people.
  5. Set up a display at a trade show. Yes, this may seem like a huge and expensive undertaking but it has its benefits. You can meet a significant number of new potential customers, look more credible to people in the industry, and keep an ear to the ground for inside info about your industry. Besides, some tradeshows can be affordable — shop around for small fairs and exhibitions.

New clients will help your business grow, so do your best to find, attract and hook them!

Categories – take ‘em or leave ‘em?

The new website for Consultant Journal is *almost* here. We’re still tweaking the design. I wasn’t happy with what we had. Once I realized the design was a sunk cost, it was easier to let it go. So I’ll be keeping some elements of the original mock up, but also bringing in some of the clean look of the existing site.

That being said — do you want categories? From my analysis of the website, it looks like almost no one uses them. Less than one percent of visitors click them. So, unless you say otherwise, I’m going to get rid of categories. Speak now or forever use the search bar.

Categories – take ‘em or leave ‘em?

The new website for Consultant Journal is *almost* here. We’re still tweaking the design. I wasn’t happy with what we had. Once I realized the design was a sunk cost, it was easier to let it go. So I’ll be keeping some elements of the original mock up, but also bringing in some of the clean look of the existing site.

That being said — do you want categories? From my analysis of the website, it looks like almost no one uses them. Less than one percent of visitors click them. So, unless you say otherwise, I’m going to get rid of categories. Speak now or forever use the search bar.

Top 5 reasons consulting resembles back to school

In my part of the world, it’s back to school time. Next week, school starts up and I’ll breathe a sigh of relief as the streets of my beloved downtown empty of tourists. Finally, I’ll be able to easily wander Robson Street (which has the 5th most expensive retail rents in the world) and the ever outstanding Stanley Park…without needing to weed my way through tourists and students. I’ll hang out at Starbucks Corner, although I far prefer to get my latte at Caffe Artigiano down the road. I’ll go shopping in the middle of the day, soak up the fall atmosphere (including the rain) and meet friends for, well, coffee — this being Vancouver and all.

But, in many ways, September brings a change in my consulting work. Summers are always a little slower. I take vacation, my clients take vacation, my clients’ partners take vacation…everyone takes it easy. I often pursue special summer projects, rather than spending all my time working "in" my business. Summer is a great time for me to look at building up my business, so that I can go like gangbusters in the fall.

So September reminds me of "back to school".

  1. People come back from vacation. I get lots of "hello" and "how’ve you been?" messages and…of course…requests for coffee.
  2. Companies start thinking about how they’re going to ramp up during the fall. Everyone looks forward to the new "term".
  3. Networking groups start up again. I’m already looking forward to a new season of hors d’oeuvres. 
  4. In the marketing world, companies start panicking about October and November tradeshows and so my email inbox fills up with inquiries.
  5. People start talking about the courses they’re going to attend. Heck, if that doesn’t sound like back to school, what does?

A note about comments

Thank you all for the comments you make here on Consultant Journal. It’s great when we get a discussion going and your comments add value for other people reading the site.

However, as this site has become more popular, I’ve seen an increase in comments that fall somewhere between obvious spam and genuine content. I feel compelled to address this.

Comments are welcome

  • Got questions? Feel free to post on the site. Chances are that someone will chime in with hep.
  • Disagree with me? Comment away! Alternate viewpoints are more than appreciated.
  • Agree with me? Think I should win the Pulitzer Prize for blogging? Heck, make twice as many comments!
  • Like to hear yourself talk? Hey, it’s no different than me running this blog. Comment at will!

Comment approval

  • If you make comments that have no relevance to the post, the comments will not be approved.
  • If you stuff the name box with keywords, your comments will not be approved.
  • If you sign off with your product name only, your comments will not be approved.
  • If you blatantly promote your wares or those of a client and do not tie them into the post in a meaningful way, your comments will not be approved.

That being said, I don’t mind if you use a name that helps identify you and your business. "Andrea the Marketing Consultant", "Andrea >> Consultant Journal", "Andrea from Become a Consultant Blog" and so on work just fine for me.

Of course, I always reserve the right to delete, approve or anonymize comments. And comments are the views of those who visit the site — they are not my words or necessarily even close to my opinions.

Setting SMART goals

Setting SMART goals can help you grow your business. Although I’ve been setting goals for years, I only recently learned about SMART goals. (Granted, the system I was using before was pretty similar.) My friend Melanie recently helped me outline some SMART goals for my business.

SMART goals are:

  • Specific – who, what, when, where, why?
  • Measurable – what gets measured gets done, right?
  • Attainable – pick goals that are achievable, given your abilities and constraints
  • Realistic – you must truly believe it can be accomplished
  • Timely – set a date for meeting the goal

In an upcoming post, I’ll discuss some ideas for setting SMART goals for your consulting business.

(Want to make sure you see that post? Subscribe to my RSSfeed.)

How to get speaking opportunities

Via the Law Consulting Blog, here’s a great template letter for finding speaking opportunities.

Speaking can help make you look credible to an audience. You can also tell potential clients that you’ve made presentations to people in Industry X or from Trade Association Y. It helps you build your brand.

I’ve done a lot of public speaking over the years — everything from appearing for Careers Day at a high school to lecturing at university.

Do you speak in public?

How to support Consultant Journal

From time to time, some of you ask how you can best support Consultant Journal.

How to consult like a Starbucks latte

When you go to Starbucks and order a latte, what are you really paying for? Milk, sugar, espresso and a cup? No way! You’re participating in the Starbucks experience.

As you hit the door, you smell the aroma of coffee. You’re in a perfect coffee-toned world, where soft jazz and comfy chairs await. In placing your order, you get to put your personal stamp on your beverage of choice. You wait by the end of the counter for a drink served up to your specs. In short, when you go to Starbucks, you’re claiming 15 minutes for you, your wants and your way of being.

Take that Starbucks experience and apply it to your consulting. Stop producing products. Start providing experiences:

  • Business consultants offer strategies for improving revenues, cutting costs and increasing customer retention — not reports
  • Graphic designers help clients project professional images in sync with their target markets — not logos, brochures or websites
  • Personal trainers help clients meet personal fitness goals — not workouts
  • IT c onsultants help automate business processes to free up time for value-added business activities — not tech support or system implementation
  • Personal chefs provide healthy meal planning solutions for busy families — not prepared meals

What experiences do you provide for your clients? This is homework. Reply with your answer — and, if you like, a description of your business and your website (if applicable) — and I’ll feature you in an upcoming post.

 

Out with Bootstrapper’s; in with…

I’m no longer giving away The Bootstrapper’s Bible with newsletter subscriptions. As of right now, you’ll receive Six Tips for Jumpstarting Your Expert Status when you sign up for the Consultant Journal newsletter. (See top right.)

Why the change? I really believe that most of you will see more value from help with growing your reputation as an expert. After all, consultants are "experts".

If you already subscribe to the newsletter, you’ll be receiving these tips in this month’s newsletter. You don’t need to sign up again.

Related:

What Julia Child can teach you about business

Famous cook, author and TV host Julia Child introduced millions of people to the art of French cooking. But would you believe she didn’t learn to cook till she was in her late 30s?

Julia Child had a wide variety of interests. She played basketball in college, then worked as an advertising copywriter and freelance writer. Later, she worked on secret projects, including making sure sharks would not blow up underwater munitions. After marrying a prominent diplomat, she moved to Paris. There, inspired by her husband’s interest in fine cuisine, she studied at Le Cordon Bleu cooking school.

It just goes to show that you can follow more than one path in life. If you’ve been thinking that you’d like to try something new — or that it’s too late to shift gears, stop for a moment and consider "What if?"

Of course, your late 30s doesn’t seem so old to me. But even if you’re twice that age, there’s no reason you can’t try your hand at something new. In fact, you’ll be able to draw from all the other experiences and skills you have.

Related:

Leaping out of your comfort zone

The guest post on comfort zones by Laura-Jane Koers stirred up a lot of interest. I’ve been talking about comfort zones in my newsletter and many of you have emailed to share your own stories.

I know that there are more out you out there challenging your comfort zones. So, tell me — here, where you can remain mostly anonymous — what things scare you? Are you doing anything different? What are you doing to change your comfort zone?

Guest post: making the leap

For many people, surviving and thriving as an independent consultant means making changes. Sometimes, as part of those changes, you need to push your comfort zone. Doing so may mean giving up your regular job for life as a full-time consultant, addressing fear of the phone, speaking in public, making cold calls or asking for consulting fees that reflect your true worth.

In my newsletter, I’ve been talking about my recent successes with changing my own comfort zone. (Subscribe via form above, right.) But now I’d like to share the story of a young woman who has taken a true leap.

Laura-Jane Koers is a young woman who has given up her city job for life on a farm on the East Coast. She’s given up the security of everything from steady pay to a warm place to sleep. She and her partner (my cousin, Cam) are renovating an old farm house, growing their own food, chopping their own wood — and taking a stab at making money from home.

Here’s part one of Laura-Jane’s story:

Taking the Leap

by Laura-Jane Koers

I’m not much of a dreamer. I plod along, living my small life in this wide world. Nonetheless, last year I found myself hurtling head-first into the wind and giving up everything I’ve ever known to live my dream. The mischievous thing about dreams is that we can spend decades wishing that they would come to pass. But the best kept secret is that, once we honestly commit to making our dreams happen, they can’t help but come true, because we’ve set them in motion ourselves. The most difficult part of achieving a dream is deciding to make it come true; once this decision has been made, the rest is peanuts.

For years, my partner and I often fantasized about leaving the West Coast and heading 6,000 kilometres east to live on Prince Edward Island. As busy working professionals in metropolitan British Columbia, we spent the occasional weekend yearning to give up our tiny condo and Starbucks lifestyle in favour of rural farm-life. We wanted orchards, chickens, and acres of rolling splendor. But our farm-dream was just an idle topic that was a welcome distraction from the everyday–it wasn’t our focus.

One Friday evening, we were enjoying the last of the day’s sun in a triangle of green-space near our condo. Discussing the too-short weekend ahead of us and how it would invariably be followed by yet another long and draining work-week, we saw our faces darken. We would later come to refer to this evening as the Night That Changed Everything.

"I think I need to quit my job," my partner of ten years said.

(Almost) always supportive, I answered, "Are you being serious? Because if you are, I’m with you."

He was serious, and, by the end of our turn around the neighbourhood park, we had made a variety of life-changing decisions. He should quit, I should quit, we should sell everything we own, and we should move across the country to an island that we had never seen. It had taken years for us to muster the courage to make such a decision, but, that night, we agreed to make it happen. In fact, we even pinky-swore on it.

Once we’d finally committed to our oft-discussed dream, we started to plan. Planning was easy; because we were committed, we knew what had to be done. We compiled a dauntingly gargantuan to-do list and slowly chipped away at each item.

Eventually we found ourselves in a chic cafe with my beloved parents. Across from my untouched panini (havarti and garden vegetables — my favourite), my father searched my face with sad, loving eyes.

"You’re moving across the country?" he asked. "But what kind of job will you get? You’ll be thousands of kilometres away! And it’s the middle of winter, for Blimey’s sake!"

My throat was trying to close up, but I commanded my anatomy to stay strong or face the consequences. "I’ll miss you too, Dad," I heard myself saying, "But this is our dream, and we’re going to make it happen."

After the decision had been made, our life change took over a year to materialize. But we eventually found ourselves waving off our families and home town, as we honked goodbye and drove east on the Trans-Canada Highway. As our parents’ waving hands disappeared around a bend in the road, my partner and I looked at one another. "Is this really happening?" I asked.

Glancing back at the rickety U-Haul trailer that housed all of our worldly possessions, he answered, "It would appear so!"

And we both gave way to the greatest laughing episode I can remember.

It is easy to get discouraged and frightened about committing to a dream. What will my family and friends think? What if I realize that this dream isn’t right for me after all? What if I fail? I bypassed my fears by allowing myself freedom. I committed to making our dream happen, but I certainly didn’t commit to living this dream forever once we’d achieved it. (I have other dreams too, you know!)

How did we do it? We looked our dream head on and said, "We’re going to make you happen." Our dream was, well, just a dream–until we decided to make it a plan. For us, all it took was a shift in perspective; we had to make our dream become our reality ourselves. And we did.

So here we are, a couple of years later, living on a 60-acre farm on Prince Edward Island. No, it isn’t always roses. I’ve chased bats out of our farm-house bedroom. And, when the wind is howling and all we have is a wood-stove to keep the weather out, I’ll admit that I have sometimes taken to wondering why we wanted to move to a farm in the first place. However, when I think back to how we dared to follow that little voice that wouldn’t go away, I can’t help but grin through the hard work, wasp stings, and cold winter toes. It was our dream, after all.

Laura-Jane Koers is a writer currently living on Prince Edward Island, in Canada. Since writing this article, she has gone on to become co-founder of Brightflock Consulting.

Friday 5: reasons to work for yourself

This week’s top five list is actually a top seven list. I’ve been talking about stepping out of your comfort zone lately, so, why not mix up the Friday 5? Just kidding. This list of seven reasons to work for yourself by Daniel was just so good that I didn’t want to limit myself.

Given the way gas prices have been headed, you might be interested in point 2: no more commute.

I barely use my car. I work from home, meet clients near my home and typically shop online for office equipment. When I do drive, it’s to a warehouse or big box store — which isn’t all that often. As a result, I have a lot more disposable income than other people. But it isn’t all about money. I feel good knowing that my carbon footprint is small for someone living in my part of the world. I like that, simply by doing my work at home, I have a smaller footprint.

When you hate your job

Most people work for other people, not for themselves. As a consultant, I count myself lucky that my time is my own. But what if you’re stuck in a job you hate?

I’ve never had a job I hated completely. I’ve always been able to find something about the job to like. But that doesn’t mean I never suffered or that I never wanted to quit. In fact, I’ve left jobs I couldn’t stomach. There’s a reason I work for myself, right?

If you’re working in a job you dislike:

  1. See if you can work from home for even a few hours a week. Some time outside the office may be refreshing.
  2. Look to change up relationships in the organization. Try networking within your organization. Negative relationships can suck the life out of you. If you can bond with people elsewhere in the organization, they may be able to "sell" other people on you. If nothing else, it may give you a friendly face for coffee breaks or meetings.
  3. Take a vacation. Get away from work and all the turmoil.
  4. Start applying for other jobs. Test the waters. Maybe you’d be happier elsewhere.
  5. Try moonlighting. Spending a bit of time on some exciting new projects may help the rest of your week seem bearable. Once you’ve built up a client list, you might even want to go into consulting on a full-time basis.
  6. Grow. Take a course. Start exercising. See a movie. Read a book. Write. Spend time with friends and family. Pursue a hobby. Call a friend. Go to a concert. Emphasize to yourself that you and your life are about more than just your yucky job.

How would you suggest dealing with a hated job?

Consulting through the rearview mirror

In the business world, the rearview mirror is always clearer than the windshield.
– Warren Buffett

He’s not kidding. It’s always easier to see what’s behind you than what’s ahead. We all make mistakes and, in retrospect, it can seem like we should have done something different.

When I think back to my early days in consulting, I remember a client who wanted me to work for $15 an hour, a fraction of my regular consulting rate. I had a day job, so I didn’t feel desperate for money. And it sounded like such a great opportunity. Ugh. I ended up working till late at night — for very little money. And ,as time went on, I realized that I didn’t want to do any more work for the guy. All I got out of the deal was a bit of money and a lot of exhaustion.

Well, I got more than that. I realized that I needed to stick to my guns when it came to consulting fees. I never, ever cut my rate again. I realized that clients who nickel and dime you are clients you don’t want. If they don’t respect your rates, they don’t respect you.

So, looking back, the money I didn’t earn was worth it. I learned never to work for such a paltry amount again. And I learned that I’m a business, so I set my rates. I’m not a wage slave.

Dealing with work you dislike

In my post on fear of the phone, I brought up the fact that a phobia can affect your business. Well, it isn’t just a fear that can affect your business. A mere dislike of something can affect it too!

How many times have you put off doing something, simply because you don’t like it? I know I’ve fallen victim to this. For example, I don’t like formatting my customer newsletter. It’s a pain. But I’ve found ways to deal with things I dislike.

Dealing with work you dislike

  1. Outsource it to someone else
  2. Put it at the top of your "to do" list and do it before you do anything else
  3. Take a small step toward accomplishing that item every day, before you do anything else
  4. Give yourself a reward for completing the task
  5. Look for another way to meet your goal. Do you really need to even do this?

We all have things we don’t like to do. How do you deal with work you dislike?

Fear of the phone

Many people resist starting their own consulting business because they’ve got a fear of the phone. I’ve met more than one person who couldn’t stand the thought of having to make calls to clients. Well, after my post on fear of public speaking, I decided to look into other fears that might hinder the success of small business owners…and fear of the phone stood out.

Via Peter Benson, I discovered a simple exercise for overcoming phone fear. It’s really best targeting at people who fear cold calling. Benson suggests that you simply write a script and start calling. That’s it. Feel the fear and do it anyway, I guess — and you’ll soon lose your fear.

Have you ever had to deal with fear of the phone?

Changing the world through consulting

I’m changing the world. Really. I absolutely believe that. My consulting business is changing the world.

How so?
I focus on helping high tech companies ready their products for the marketplace. In doing so, I help my region move away from its primary resource economy and toward a knowledge economy.

My marketing plans make businesses money, so they can pay their staff. That means I help people generate incomes with which they can support their families.

My business plans help people get their businesses off the ground or back on course. I help people pursue their dreams.

I hire other consultants to work in my business, giving me the chance to mentor people and share my knowledge.

I’m changing the world. How about you?

5 ways to make money from web data

Via CP Development, here’s a list of five ways to make money using data extracted from the web.

I’m not entirely convinced by #1:

  1. Extract a list of your prospective customers (from a business directory, professional association website, competitor’s reference list …) and employ sales force to offer your products&services via email, telephone or postal mail. Sweep the entire prospective market for as low as $1,000!

I’ve been in marketing for a long while. I’m not sure you can do a *great* job of sweeping the entire market for $1,000. It takes time to find, filter and clean data and more time to contact that market. Most people won’t convert on a single “touch”. But it may depend on your market and how you go about contacting people.

When you don’t know enough

Over the past couple of weeks, I watched as a good friend — a consultant — struggled with delivering her latest project, a new course. I’d seen her go through this before. I’d always come forward to give suggestions and to offer my moral support. But she still felt overwhelmed and uneasy…even when she finally developed a super end product on time and with great fanfare. She always emerges on top, but getting there is a huge battle for her, when it comes to developing courses and teaching them.

Last night, I asked her if she’d ever considered taking one of the adult education courses at a local college. I mentioned that I took the certificate before I got into teaching. She was blown away. She’d had no idea that you could take a course in teaching. Suddenly, the burden of developing the course seemed a bit easier. If she could just get through this project, she could go take the certificate and feel better. Six nights and $700 would change her world.

If you feel like you’re overwhelmed by the work before you, don’t look at this as failure. It’s merely an opportunity to strengthen your skills and learn from your mistakes. As I’ve mentioned before, great people make lots of mistakes, too. It’s the asking for help and looking to improve that will make the difference. And practice. Lots of practice.

Robin Williams on getting paid

I just heard this Robin Williams line:

Carpe per diem – seize the check.

Once you’ve set your consulting fees, make sure you have a good contract to help you collect them. Establish some basic business policies, so that you don’t turn into a line of credit for your clients. Follow steps to collect on late payments.

Do you need to like public speaking to sell?

After my post on public speaking, some of you naturally wondered if there was a connection to selling, especially since I linked to a post on sales skills. Well, yes and no.

Yes, it helps if you can speak in public. You can speak at tradeshows, conferences, seminars, meetings, teleseminars and so on. You can teach courses and get up in front of people all the time.

But, no, you don’t have to be great at public speaking. You can manage clients via direct mail, email, phone calls, one-on-one meetings, conversations and so on. Introverts have tons of great business qualities.

The key is to build on your strengths and to find ways to mitigate your weaknesses. Try doing a personal inventory to figure out your best qualities and where you need more practice. Focus on success and you’ll find a path.

How I overcame fear of public speaking

Does the thought of public speaking make you feel ill? Fear of public speaking is called glossophobia.

I’m not a shy person. Far from it. I’m a classic ENTJ. For many years, I thrived on speaking in public. But, one day, I was asked to give a presentation to a group of three people. When I got there, I realized that I’d run into two of the people before. I knew one of them had it in for me. That made it difficult to start talking. To make matters worse, at the end of the presentation, one of those two people accused me of breaking the law during my presentation. He accused me of copyright infringement. I was shattered. I take copyright very seriously. However, this individual worked in a field where copyright was discussed regularly. So I took him at his word. I apologized and left.

Later, I did a little more research and confirmed that, I did not infringe anyone’s copyright. My understanding of fair use and private business meetings was correct. It was the prospective client who was wrong.

But it didn’t matter. The event shook me up enough to keep me from speaking in public for a couple of years. I turned down opportunities. I didn’t want to take a risk again.

Still, I’m an ENTJ. I plan. And then I carry out that plan. I knew that, by taking small steps, I could conquer my glossophobia and start speaking in public again.

So I contacted a tiny organization. I asked if I could make a presentation to a small group. And I did it. And I survived.

Then I started going to professional association meetings. I started asking questions. That brought attention to me. I spoke well. After a while, I was sometimes asked to address the group. No problem. I was among friends.

Next, I applied for a job as an instructor. I’d be speaking in public (albeit to a group of about four people) once a week for a few months. I’d be teaching a subject I knew well. And I did it. And was hired again.

But the client wanted to know if I could teach another subject…one that I wasn’t sure I was good at. I’d have to study to get ahead of the students. I decided to try it. And I got better reviews for teaching that content than I did for teaching the stuff I knew by heart!

Pretty soon, I was teaching several classes. And then a major university asked me to teach a course. I did that, too. And was asked to teach more courses.

So, although I was never a shy person, I conquered a one-time fear of public speaking. Next week, I’ll give suggestions for conquering a fear of public speaking.

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The joy of the experience

One of my closest friends took me to task recently. She said I’d got too wrapped up in my earnings and measurable results and that I was losing sight of the big picture.

And she was right.

See, I’ve been having a great year, earnings-wise. But I kept pushing that bar higher and higher.

And so I just never felt like I was as good as I could be.

I kept changing my definition of success, in my pursuit of achievement. Whatever I said was good enough last week, suddenly wasn’t good enough this week. I needed to do more.

Well, if there’s anything to appreciate, it’s a good friend. And my friend told me point blank that I was being ridiculous. And she’s right.

I’d become so focused on growing my business and measuring myself by that yardstick that I lost sight of all the amazing things going on outside my bank account. (And, as I’ve noted, it isn’t like my bank account is a problem right now.)

And so, all week, I’ve been thinking about all the amazing things I’m doing right now. I revised my goals for the next two quarters, so that they focus more on where I’m going and less on what numbers I need to achieve. I’m going to focus more on doing and less on measuring.

This is a hard thing. I mean, I’ve been having an amazing year with my business. So looking at the numbers must be the solution, right?

Well, I’m not going to focus on the numbers for the next while. I’m going to look to my dreams and my hopes and my passions.

That’s because I didn’t leap into self-employment with the aim of making as much money as I could. I did it because I wanted to take control of my life, have flexibility, call my own shots….I did it for the experience and the quality of life. And, frankly, there’s no way to measure that. Being acquisitive with my revenues isn’t going to show all the great things I’ve done with my life — even though this has been a great year in terms of finances. Because it’s not about the money. It’s about the spectacular family, friends, lifestyle, balance and joy I have. And I wouldn’t give that up, no matter how high my revenues soared.

When I look back when I’m 90, I won’t say, "Gee, wasn’t 2008 a great revenue year?" No, I hope I’ll say, "Wow, wasn’t 2008 the year I took amazing personal risks? Wasn’t that the year my boys were both still so little and I got to spend so much time with them? Wasn’t that an amazing year?" It will never be about the numbers, even if the numbers were fantastic. They aren’t the point.

Friday 5: top 5 extrovert careers

Via Yahoo, I stumbled across a list of the top 5 careers for extroverts. Yikes, the highest paying career cited is still only $80k! That’s not exactly what I’d call a hot career. Granted, I suppose you can move up the ladder from there — into management and senior management — but it’s still not what I’d consider hot. I’ll give them the benefit of the doubt and assume that, by HR specialist, they meant someone who is still not in middle management.

In contract, I know a human resources consultant who charges $225 an hour. She offers career coaching, retreats, courses and so on. To make $80k a year, she only needs to bill an average of seven hours per week.

Related

Working at home with a baby

Working from home….imagine baby tucked into a sling or crib, while mom types away at a keyboard, leads a teleconference or assembles products. You might wonder if working from home really turns out to be so ideal or if it’s just a pipedream.

I’ve been working from home since before I had kids. But working from home with a baby is not the same as when it was me, my latte and I. Still, I’ve managed whiplash, renovations, a move, more renovations, a second pregnancy and a second baby. And I’m still happily working from home. Here’s how:

  • Look for tradeoffs. I chose not to use a nanny or daycare, but I hired a weekly housecleaning service, signed on for grocery delivery and bought a robotic vacuum. Some work from home parents swear by meal preparation services.
  • Be patient. Once your baby settles into a nap schedule, you will have more time for yourself. You may have two to three hours during the day and another two to four in the evening, depending on bedtime for you and baby. My first baby didn’t nap much at all, mind you, so it just depends on your baby.
  • Let baby sleep beside your office. When my babies were tiny, they napped in a bassinet near my workspace. I kept all diaper supplies, a few changes of clothes and other things handy.
  • Be realistic. If you have a tiny baby who has not yet settled into a regular nap schedule, it can be hard to find time to work. You may want to spend any “spare” time resting. If it’s critical for you to work, consider getting help – whether that’s a nanny, housecleaner, grocery delivery, meal preparation or a local high school student who plays with the baby while you take a nap.
  • Take a look at childcare options. Some parents work from home without ever turning to childcare providers, whereas others have dedicated in-home care. Work from home parents can choose from a variety of options. This might mean that a grandparent or friend looks after the baby for an hour or two. For others, a nanny or babysitter provides in-home care. Some parents rely on full- or part-time daycare. In my case, I’ve worked out an arrangement where my husband uses his flex time to cover me during occasional business meetings and critical phone calls – he makes up the time at night. I also make use of a preschool-aged program where I can drop off my older son for a couple of hours twice a week.
  • Allow someone else to reinvent the wheel. Rather than investing hours in building your own business, consider telecommuting for an employer, accepting subcontracted work from an established business or purchasing a franchise.

Above all else, do what works for you and your family. There are as many ways to work from home as there are people working from home. Trust yourself to know what makes sense for you.

For help in working out what kind of business would suit you as a parent, take a look at my Discover Your Inner Entrepreneur for Moms workbook.

 Related:

How often should I post?

For the past week or two, I’ve been posting more than usual. Up till now, I’ve been posting three times per week. Some people have suggested I cut back to once a week, whereas others have asked for more posts. Any thoughts? Feel free to contact me, if you prefer not to comment.

Wikinomics — a book I just read

I just finished reading Wikinomics by Don Tapscott. It’s about the second generation of the web — Web 2.0, where mass collaboration emerges. Facebook, Flickr, LinkedIn, even this blog, when people make comments.

When people collaborate, a static webpage comes alive. This blog wouldn’t be nearly as vibrant without the contributions of readers. I cherish all the comments my readers make and encourage you to take part. You’re part of what makes this blog helpful for other people.

Related

What Churchill can teach you about business

Following my post on what Steve Nash can teach you about business, I followed up on Justin’s comment about the wisdom of Michael Jordan and Winston Churchill. Today, I found a great quote from Churchill:

Success is the ability to go from one failure to another with no loss of enthusiasm. — Winston Churchill.

Noticing a theme here?

Bootstrapper’s Bible giveaway ends soon

For the past year or two, I’ve been giving away a free copy of Seth Godin’s Bootstrapper’s Bible to everyone who signs up for the Consultant Journal newsletter.

This offer expires soon.

So, if you want the Bootstrapper’s Bible, sign up right now using the form at the top right.

BUT…

Stay tuned. In a short time, I’m going to be making a new offer to everyone who signs up for my newsletter. If you’d like to find out what that is, you can still sign up now. I’ll send you the details as they come available.

Dealing with clients who want a million changes

Have you ever run into a client who wants a million changes to every project you deliver? You know the type…nothing is ever quite good enough. You could go through rounds and rounds of revisions and still never be quite good enough.

If you’re working on a quoted project or flat rate basis, revisions may eat up your time…and your profits. So how do you keep a lid on changes?
•    Define your project scope in your legal contracts.
•    Outline rates for work outside the project scope.
•    Let your clients know when they’ve asked for something outside the client scope.
•    Within reason, point clients to the project scope and offer to quote on changes.

What do you do to manage picky clients?

Related

Are you confident enough to consult?

Working in consulting requires a certain degree of confidence. After all, if you’re not confident in your abilities, you’ll have a hard time persuading clients that you know your stuff.

But what if you’re not a particularly confident person? What can you do to become more confident?

Tips for increasing your confidence

  • Prepare. Remember the Boy Scout motto, "be prepared"? Well, if you’re ready to do your work, meet with a client or hand in a report, you’ll come across as a more confident.
  • Dress for success. Putting on professional clothing can make you feel more successful. It’s like a uniform.
  • Stand up tall. Good posture makes you seem confident.
  • Make eye contact. When you look people in the eyes — in Western culture — you convey trust, ability and confidence.
  • Get rid of your expert complex. Remember, an expert is just someone who knows more than their audience — or, in a pinch, someone who has time to do a job when the client can’t. You don’t have to be perfect. As Woody Allen once said, "80% of success is just showing up."

How do you improve your confidence?

5 things not to do in a downturn

It’s Friday 5 time — a top 5 list to kickstart the weekend. Via Business Week, here’s a list of the top 5 don’ts for a downturn (expired link).

Those of you who know how I feel about consulting fees won’t be surprised that I agree with #4:

4. Don’t discount.

Cutting your rate just makes it look like you were joking the first time around. Either you’re serious about your fees or you aren’t. Send your market a consistent message — by being consistent with your fees.  

What Michael Jordan can teach you about business

I recently wrote about what Steve Nash can teach you about business. Justin Beller commented that greats like Churchill and Michael Jordan can also offer wisdom.

Curious, I decided to check out Jordan. I love this Michael Jordan quote I found on ESPN:

I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. Twenty-six times, I’ve been trusted to take the game-winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed. — Michael Jordan

When you hear about great athletes, it’s tempting to think that they’re perfect. But the reality is that someone like Michael Jordan has probably missed more shots than anyone else.

If I stop for a moment and think about this myself, I’ve made a lot of mistakes. As I’ve mentioned in my newsletter (subscribe above right), I’ve been working with a personal trainer — and I’ve seen a huge effect on both my professional and personal life. If I think about how when I started, just doing lunges was tricky. I didn’t want to do them. But now I can do dozens in a session and get them right. But I’ve had to do those lunges a few hundred times now. And I see such a difference. If I just focused on how many I messed up, I’d be discouraged. I choose to focus on the results I’ve achieved. And that’s where I can be proud.

So, if you’re working your way through the world of business, try practicing and focusing on the end goal. The mistakes aren’t as important and what you learn.

Steve Jobs on following your heart

Almost everything–all external expectations, all pride, all fear of embarrassment or failure–these things just fall away in the face of death, leaving only what is truly important. Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart.
–Steve Jobs

What’s stopping you?

Managing payment delays

Sometimes, despite your best efforts, you may run into a period where clients are late in paying. Perhaps it’s not your fault that clients have paid late and you’ve been good at giving clients a short credit window. So what do you do when you’re faced with a delay in payment?

What steps do you take to manage payment delays?

How long do you give clients to pay?

How long do you give clients to pay? When I set up my consulting contracts, I specify that payment is due at key milestones. I take a certain amount upfront and, depending on the size of the contract, I invoice about every two weeks or at key delivery points. However, I don’t give clients 30 or 60 or 90 days to pay…unless they’re prestigious "brand name" clients, such as a Fortune 100 technology firm that told me, up front, that they’d take net 90 days to pay.

But, for the most part, I expect clients to pay right away. I will delay further work if payment is late. And I charge interests rates that compete with any department store credit card. I also take up to 50 percent as a deposit on my consulting fees.

As a result, most of my clients pay me within a week or two. One of my clients often pays the entire amount before we even start the project.

I’m not a bank. I avoid extending credit to customers. Besides, when I’m firm about my rates and payment terms, I signal that I’m running a business.

How long do you give clients to pay?

Related to consulting fees and payments

Do you work weekends?

It’s the weekend…are you working? Do you want to be working?

When you’re an independent consultant, time should be your own. You can determine when you want to work — and if.

But I know many consultants who work weekends because their clients call them with rush jobs. When the phone rings at 4 pm on a Friday, it can be tempting to say "Yes", if the money is good enough.

I’m not immune to this. I’ve taken on my share of weekend jobs. But, when I do, I charge rush fees, rather than my usual consulting rate. Sometimes that means triple my normal rate or more.

And I don’t accept every weekend job that comes along. I want it to be clear to people that I have boundaries. I do not want to be the person they call every Friday with a weekend job.

If you’re getting a lot of requests for weekend work, start pushing back. Once people think you work weekends, they’ll expect you to work weekends. And they may even want you to work for a regular rate.

It’s one thing to work a weekend because you’ve weighed up the costs and benefits. It’s another thing to be stuck working weekends because people see you as the "go to guy" for last minute weekend jobs.

Do you work weekends?

Friday 5: making more money

Via Flying Solo, I found a list of ways to set business goals. I loved their example list for making more money:

  • Charge a lot more;
  • Speak for money;
  • Create a high-end product to sell (or multiple products);
  • Work with different clients who expect you to charge a lot more;
  • Sell someone else’s related product for a commission;
  • Go totally online and remove your overheads.

As a consultant, I’ve pursued several of those ideas — while my revenues have soared. I raised my fees. I started teaching. I came up with products. I went after higher end clients. I started reselling other people’s services. And I moved many of my marketing efforts online, cutting my advertising costs. Last month, I billed more than I’ve billed in years — and I just had a baby in the fall. Yeah, baby!

What Steve Nash can teach you about business

What Steve Nash can teach you about business

Basketball MVP Steve Nash has had some phenomenal successes in his career. I recently read this quote from Nash, who grew up just a few hours away from me:

People have always doubted whether I was good enough to play this game at this level. I thought I was, and I thought I could be. What other people thought was really always irrelevant to me.

So, if you’re suffering from concerns that you’re not good enough, not successful enough, not talented enough or anything else, stop worrying about the rest of the world for now. Focus on yourself. Believe in yourself. You’re the only one who matters. And, if you’ve dared to think you can do it, you can redirect your energy to a plan for succeeding.
 

Should you drop your rate to build a client list?

You quote on a project, but the prospective clients says you’re too high. You were really hoping to land this client and now the money seems less important than the prestige. You’re just starting out and your client list is pretty slim. Should you drop your rate?

No way. If you discount your rate to get the job, it tells the client that your first quote was inflated. It also means that you’ll never be able to charge them your full consulting fee rate — they’ll always expect you to cut your fees.

If you really want to build your client list, do volunteer work for a charity. There are tons of deserving charities out there — find one that’s aligned with your values and do some pro bono work for them. Over time, you can use that work to win slightly more well known clients…and then work up to doing a deal with the clients who offer prestige.

5 steps to a wonderful life

This week’s Friday 5 comes from John Wesley — the top 5 ways to build a wonderful life.

#5 was especially meaningful for me:

Work Towards a Dream You’re Passionate About

Even if your life isn’t perfect, you can always build towards a goal you’re passionate about. If you aren’t building towards something, you’re probably stagnating.

I’ve achieved so many of my dreams that I’m currently busy with making up new ones. I think it’s important to revisit your life goals from time to time and to set new ones. Otherwise, you’re sort of rudderless in the Sea of Life.

Those of you who subscribe to my newsletter also know that #6 from the above list is also important to me right now. Breaking out of your comfort zone now can help you live a more comfortable life later!

Convincing clients to buy again

You may have heard of the Pareto principle, where 80% of your revenues will come from 20% of your clients. I’m not sure how true that holds for consultants, but it’s always seemed pretty likely to me. While it’s good to find new customers, it’s a lot easier to build strong relationships with current clients so they will buy again. Heck, they bought from you the first time. So how do you do it?

Speedy delivery makes a great impression. No one wants to wait forever for a project to arrive so it is critical to deliver on time, if not ahead of time. Depending on the kind of work you do, the quicker your clients receive their projects, the quicker they can hire you again.

Provide repeat customer discounts. Show your customers that you care by offering them special deals, discounts and coupons. (I particularly like the idea of offering a bigger discount for invoices paid within seven or 15 days, as it rewards loyal clients and puts money in your hands faster!)

Offer good customer service. Responding to email inquiries within a reasonable amount of time and properly addressing concerns makes a good impression and keeps clients willing to do business with you.

Streamline purchases. Do not make it difficult for customers to buy from you. I learned this the hard way, years ago, when a loyal client complained that my lengthy contract added to his workload. I started offering "change orders", so that he could order more services without needing to deal with a multi-page contract.

Remember, the secret to success is turning customers into repeat customers. So, always make that first purchasing experience a positive one. Scratch that. Make ALL purchasing experiences positive!

What a greasy spoon can teach you about business

Once in a while, I have lunch at a market near my home. There’s a struggling greasy spoon that has changed owners several times. I’ve never ordered from the greasy spoon because their menu looks like this:
spaghetti
chicken

  • burgers
  • sushi
  • potstickers
  • meatloaf
  • pasta with your choice of 10 sauces and three meats
  • teriyaki with your choice of two carbs and three meats
  • pizza
  • all-day breakfast
  • salad with your choice of three meats
  • and so on

The greasy spoon has pictures of all the foods hanging above and around the counter. Some of the food actually looks pretty good. But I’ve never ordered any.

Why? Nobody can possibly do all those things well. The greasy spoon has failed to specialize. As a result, my trust in their abilities is eroded. If they had a tight menu, I’d probably try it out. But the laundry list of food options suggests to me that they don’t even know what they do well.

As I mentioned in Do you do "X"?, it pays to specialize. By keeping a tight rein on your business offerings, you’ll be in better control of your business. More importantly, clients will be more likely to see you as an expert.

What do you do well?

Independence Day

Happy Fourth of July to my US readers! While you’re celebrating Independence Day, I’m thinking about my time as an independent consultant. I’ve talked about Independence Day before, but let me emphasize this year’s reasons that I love consulting.

5 Reasons I’m Happy to be an Independent Consultant

  1. Consulting brings work-life balance
  2. It allows me to work from home, eliminating my commute
  3. I set my own price. Well, okay, the market sets my price too, but I’m more in control than if I worked for someone.
  4. I choose my own projects, clients and work hours.
  5. I’m writing this post from the sandbox at my parents’ house, several hours from where I live. Try justifying that to a boss.

See my Big List of Reasons to Become a Consultant.

Do you do windows?

You open an email and it’s a forwarded message from a trusted colleague:

Bob’s a long time friend of mine and his business is looking for someone who can do "windows". I know you usually do consulting, but they’re desperate to get going and they can pay handsomely, if you can start right away. They value a referral and they don’t have the time to look much further. Can you do windows?

So, do you do windows? It’s funny how many of us say, "Yes, I can do ‘windows’" even if it’s not part of our core skillset. The threat that business could dry up tomorrow seems to loom in the minds of many business owners. But, by saying you can do "windows", you may actually be doing yourself more harm than good.

It pays to specialize. If you venture too far from what you’re good at, you’ll waste time and energy in delivering something that’s up to par. And that can hurt your overall business.

Granted, sometimes we all like to have a little extra in the bank. So, if you do "windows", make sure you think about it first. If it makes sense and it won’t take you away from your overall business goals, don’t beat yourself up for doing "windows".

(Thanks to Ed for suggesting this post.)

Related

How to automate your home business

With any small business, it’s possible to get caught up in administration. Consider taking steps to automate your business processes, so that you can focus on paying work.

How to automate your consulting business

  • Develop "boilerplate" responses for emails and proposals
  • Implement a customer relationship management system for handling incoming leads (like calls and emails)
  • Give clients a small discount to incent them to use Paypal, email money transfers and similar methods to pay you
  • Pay your subcontractors by Paypal or email money transfer
  • Outsource low-skilled, repeating tasks, so that you can focus on higher paying work

Do you have any tips for "automating" your home business?

Friday 5: top 5 uses for extra income

Although my consulting income tends to be pretty stable, I sometimes have months where I earn more than I expected. I have an emergency fund and enough cash flow that I don’t need to bank all the extra money. I recognize that some people have feast or famine cycles, but I’ve been working long enough for things to be steady.

So, what do I do in the months where I have extra money? Here’s a top 5 list of my "spends" for the first half of this year:

  • I bought a Roomba — a robotic vacuum that sweeps and vacuums my house while I’m working, playing with the kids or out and about.
  • I paid down my mortgage. (That is, I made extra payments.)
  • I topped up my kids’ college funds.
  • I topped up my retirement fund.
  • I bought a new LCD TV, which is great for projecting PowerPoints, demoing my work, watching the news, or, on occasion, for personal TV viewing.

What would you do with unexpected earnings?

Side jobs – 10 ways to get ahead

Want to get ahead? Consider taking on a side job. Working at a second job is often a great way to:

  1. Pay down credit card debt
  2. Save for a downpayment
  3. Build up an emergency fund
  4. Top up your retirement fund
  5. Get your consulting business or other small business off the ground
  6. Eliminate your student loans
  7. Save up for a car
  8. Get money together for a dream trip
  9. Have a dream wedding
  10. Have cash on hand for the next year of car insurance, home insurance or anything else you’ve been planning to finance.

I started consulting on a part-time basis, back when I still had a day job. As a result, I was able to achieve many dreams. Now I run my own business on a full-time basis. What could a side job do for you?

Check out my book on Side Jobs:

 Side Jobs - Second Jobs, Side Gigs & Part-time Businesses Ebook

Related to side jobs

Next newsletter appears this week

The next issue of the Consultant Journal newsletter goes out this week. I’ll be talking about breaking free from your comfort zone and sharing some of my own recent attempts to shake things up. If you’d like to get on the list, sign up today with the subscribe form at the top right of this page.

If you miss the cut off for this issue, just contact me and ask me to send you a copy.

Whose fault when clients pay late?

When clients pay late, do you blink? Do you assume that it’s just part of doing business? Or that it’s the fault of your client?

Is it your fault when clients pay late or not at all?

Sorry to break it to you, but it may be your fault when clients pay late or never pay at all. Some reasons clients fail to pay on time:

  • You never put the contract in writing
  • You failed to meet the contract terms
  • You haven’t got confirmation of the client’s receipt of your project delivery
  • You didn’t send a formal invoice
  • Your contract doesn’t penalize late payment
  • Your contract doesn’t go over payment terms
  • You forgot to include your name, address and contact details on the invoice
  • You haven’t sent a statement of account
  • You haven’t followed up by email
  • You haven’t followed up by phone
  • You haven’t followed up by registered mail
  • You haven’t applied in small claims court
  • In the case of a liquidation or bankruptcy, you haven’t applied to become a creditor

Obviously, you should start at the top of that list and work your way down. But, above all else, make sure you get contracts in writing. Although a verbal contract may be binding — depending on where you live — it’s harder to prove after the fact. If you need help putting together a contract or an invoice, I recommend US Legal Forms

Fit 4 Two partnership – Mompreneur workbook

I’m pleased to announce that I’ve partnered with Fit 4 Two to offer Discover Your Inner Mompreneur to thousands of new parents. Headed by Melanie Osmack, Fit 4 Two is a leading chain of stroller fitness, prenatal fitness and postnatal fitness providers.

I first learned the word "mompreneur" from Fit 4 Two owner Melanie Osmack. Melanie turned her personal training consulting business into a franchise, so that others could benefit from her investment in marketing and business development. When you look at what she’s accomplished in five years — while raising two little ones — it’s inspiring. I’ve been in business for more than 10 years and I also have two little ones, but I regularly look to Melanie for her thoughtful insights.

Related:

Magazines West readers: welcome!

Magazines West readers — thanks for stopping by. Consultant Journal was mentioned during Magazines West yesterday — in the Best Business Practices for Freelancers session.

If this is your first time here, welcome!  Here are some of the most popular articles on the site:

This site is packed with tons of free information. However, you can also purchase a Consulting Fees: A Guide for Independent ConsultantsDiscover Your Inner Consultant, and, as of this week, Discover Your Inner Mompreneur.

Whether you’re new to freelancing or already running a successful consulting business, this site can help you survive and thrive as an independent consultant. Thanks for visiting. If you’d like to add this site to your RSSfeeds, click here.

Friday 5: top 5 audience analysis tools

Via Code Adventures, I discovered a review of five tools to help you analyze your web audience (or target market, as the case may be).

They’re worth checking out. However, I continue to be skeptical of Quantcast. It has hilariously incorrect results for Consultant Journal. Check out all the grade school kids who apparently visit this site. I don’t think so!

I also think it’s a little strange that Google reports about 160 links to my site, while Yahoo says 10,000.

Discover Your Inner Mompreneur: choosing a mom biz

Consultant Journal focuses on the wonderful world of independent consulting, freelancing and contract work. Given the success of Discover Your Inner Consultant, I’m pleased to announce the soft launch of…

Discover Your Inner Mompreneur

Designed for moms who want to run businesses — for a few hours a week or for a full-time, full-scale endeavor — the Discover Your Inner Mompreneur workbook features information, resources and worksheets to help you choose a business. And let me emphasize that this guide will work for any kind of business, not jut consulting and freelancing.

I’ll be partnering with Fit 4 Two, the acclaimed national pre- and post-natal fitness company, to bring this new guide to thousands of mothers. Melanie Osmack, founder of Fit 4 Two and its chain of franchises, encouraged me to put together a guide for mothers who want to run businesses. Incidentally, Melanie was a top 10 finalist in the 2007 Mom Entrepreneur of the Year Awards.

If you know a mother who’s interested in starting a business, check out Discover Your Inner Mompreneur. Thanks!

See how easily you can make more

As I noted last time, lazy consultants can make more, simply by changing the words they use to describe their work. You might be thinking that some clients are sure to walk away if you raise your fees. Well, some clients may be put off by your higher fees. But even if some of your clients leave, you can still make more money.

How you can make more even if you lose work

Let’s say you’ve been happily billing 20 hours a week, for a total of 80 billable hours per month. You’ve been charging yourself out at $35 an hour. So you make about $2,800 a month.

You decide to raise your consulting fees to $50 an hour. As a result of your decision, some of your clients leave and you’re now working 80% as many hours as you were before.

Guess what? You’d still be earning $3,200 a month! That’s 14% more than you were before. And, if you go out and find a few new clients, so that you’re billing as much as you were before, you could make $4,000 a month.

A big jump in fees can deliver big results

But what if you already make $75 an hour and you bill 20 hours a week, for $6,000 a month? How much could you make per month if you raised your fee to $125 an hour and worked 2/3 as much?

You’d be making $6,600 a month, from working a little more than 13 hours a week. If you found a couple new clients and brought your workload up to 15 hours a week — that’s still down from working 20 hours a week — you’d make $7,500 a month.

So, if you’ve been avoiding raising your fees because you’re scared of losing a few clients, you may want to rethink your strategy. In an upcoming post, I’ll discuss ways to manage your client base, so that you’re protected from finicky clients.

Need help with setting your consulting fees? Order my Consulting Fees Guide.

The lazy consultant’s way to make more money

Making money — that’s a key reason you’re a consultant, right? You’re not doing this for free, are you? So what if there was a way for you to make more money for doing the same work, without any added effort? Well, there’s a simple way to do that.

Here’s how to make more money

Change the words you use to describe your work.
Several years ago, I attended a professional association meeting. The topic was setting fees for freelance writing. The speaker asked the group to do a show of hands to represent the fees they charged.

  • 2 people said they charged $125+ an hour
  • 2 people said they charged $65+ per hour
  • 25 people (or so) said they charged $15 to $25 per hour

These people were pretty much doing the same work. So how come some people in the room were making almost 10 times as much for doing the same work?

Positioning. The people who charged more used different words to describe their work. Whereas most of the people thought of themselves as freelance writers and editors, the people charging $65+ an hour called themselves "marketing communications consultants". And the two guys charging $125 an hour (the only men in the room, by the way) billed themselves as "content engineers".

I was in that room, too. I was one of the people charging $75 an hour. When I found out two people were charging $125 an hour for the same work, I decided it was time to change my fees.

In my next post, I’ll explain why charging more can make you money, even if several people balk at your fees.

Need help with setting your consulting fees? Order my Consulting Fees Guide.

Top 5 biz mistakes that drive people crazy

This week’s Friday 5 comes from Escape from Cubicle Nation: the top 5 nitpicky mistakes that drive me crazy.

Well, they drive me crazy, too!

Sharing an email address with your spouse.

Ugh. Please. Get your own email, even if it’s through Yahoo or Gmail. You should eventually have your own website and thus domain, but, please, don’t send email from janeandbob or, worse yet, BobandHisGreatDogJake.

Not including enough information in the “About Us” page of a website.

No kidding. I don’t even send email message to companies with limited “about us” pages. I want to know who you are before I send an email.

What bugs you ?

Aligning your work with your values

My community grocery store was having a green Earth fair this past weekend. My husband and I wheeled the kids through the booths, stopping to check out the yoga demonstration, the hybrid car and a few other displays. At one booth, I chatted with someone from an organization that aims to connect city people with the farms that grow their food. I mentioned that, many years ago, I worked for the government as a marketer of agri-food — value-added agricultural products.

The farm fellow asked me what I was doing now. I explained that I run my own marketing consulting company and that my experience in marketing agri-food had led me to look into what other value-added products I could help my country market. I said that I felt the country relied on primary resources too much and that I wanted to help create a knowledge economy.

He asked if I worked from home. We had a chat about carbon footprints and how mine was pretty small, since I have no commute and try to shop on foot. I noted that, now that I have a family, I’ve found ways to keep consulting without needing to put my kids in daycare. And then it dawned on me…

I got into consulting because I wanted to live my values. When I started out, all those years ago, I was just diving into a dream. But now I’m there.

Wow.

"It’s pretty exciting to be able to making your living from your values," I said. And the guy nodded. He understood. We got each other.

Why do you want to consult?

How to make the leap to full-time consulting

  1. Moonlight. You can test the waters without plunging in by starting your consulting business while you still have a regular job.
  2. Build an emergency fund. Whether you decide to fly solo or not, you can benefit from having a few months of expenses set aside in an emergency fund.
  3. Set up your home office.
  4. Launch a website. Today’s clients like to get background information before they even meet you — and they like you to have a website.
  5. Print professional business cards. You won’t be able to network without them. And get professional cards. Don’t create your own.
  6. Figure out a plan for working on your own. Rather than abandoning a successful consulting practice because of home office isolation, you should figure out how to get out and socialize as part of your home office routine.
  7. Start networking. If you want to find new clients and work on big projects, you’ll need to know more people than you can count on both hands.
  8. Pick the right time. You’ll be more successful if you’ve got all your ducks in a row. Do your homework, get organized, find some initial clients, get some work under your belt, save up a little money – then become a consultant.
  9. Put together a budget. You can expect a feast or famine lifestyle with consulting. If you have an idea of your earnings and expenses, you can put together an average and dip into your emergency fund (or top it up) as needed.
  10. Establish credit. A line of credit and a business credit card – used responsibly – can help you manage cash flow, book flights and hotels, defer payments and pay for lunch meetings with clients. Clean up any credit problems before you launch your business and you’ll have better access to credit once you’re self employed.
  11. Learn how to write a good proposal. Good proposal writing is as important as setting your consulting fees right.
  12. Charge what you’re worth. Set your consulting fees and treat yourself like a real business – you are a business.
  13. Get a deposit.  If you take some money up front via a deposit, you’ll be better protected and less cash strapped.
  14. Get it in writing. You may live somewhere that verbal contracts are legal, but it’s a lot easier to prove you had a deal if you get it in writing.
  15. Come up with a customer relationship management strategy – and set of tools. Whether you want a Rolodex, contact management system or full CRM suite, you need some way to keep track of your leads, prospects and clients.
  16. Set up your home office. You’ll be organized if you put together a home office in the beginning, rather than six months from now.

Related to becoming a consultant

Top 5 mistakes that will ruin your efforts

It’s time for the Friday 5 list. Via Softopedia, I found a top 5 list of mistakes that will ruin your efforts. The list is aimed at personal fitness, but it’s extremely relevant to the health and fitness of your business, too!

The top 5 mistakes:

  1. Fail to plan
  2. Set unrealistic goals
  3. Do too little
  4. Do too much
  5. Starve yourself

Okay, I know most of you aren’t starving yourselves to become consultants. But you do need to make sure you’re focused on pacing yourself. It’s okay to become a consultant a little bit at a time.

How a bad client made me money

A bad client can turn into a money maker. How’s that? Get rid of the bad client and implement a new policy.

Early in my consulting career, a prospective client asked to hire me for 30 minutes, just to see what I could do. It was late on a Friday and I figured I could use the extra money to splurge on dinner. The guy sent over a deposit within the hour, since he was in a tower down the road. I got to work and delivered the mini project on time.

The client phoned me back and said he loved my work. But now he wanted to see what I could do in 15-minutes. Realizing that administration of the project would soon overtake the time of the project, I declined. I immediately implemented a minimum charge. The client wasn’t willing to commit to such terms. So we parted on good terms. I was happy, because I’d just warded off future five-minute and perhaps even one-minute projects.

All these years later, I still have that minimum charge. It’s allowed me to eliminate clients who have projects that take more time to administrate than to do. As a result, my earning power has increased, since I’ve minimized non-billable work.

What do you think of minimum charges?

Related to consulting fees

Warning: troublesome clients are

Heed the tale of the troublesome client. The one who:

  • starts off with a demanding email, saying that they desperately need help by this weekend
  • tries to lock you into an hour-long "interview" on the phone, once you respond to that email
  • insists that the project is a five alarm fire
  • but can’t afford to pay you what you’re quoting and asks for a discount
  • tries to get you to tell them what to do before they sign a contract
  • says they can’t possibly get you a deposit in time
  • tells you they’ve already interview half a dozen consultants and "no one seems to know enough to handle this"

If a client seems like trouble at the beginning, there’s a very good chance that they’ll turn out to be a major pain later. Over the years, I’ve learned to turn and run at the first sign of trouble. I know to trust my gut. Most of my clients are dreams to work with. But every once in a while, I meet a prospective client who gets my spider senses tingling. And that’s when I say, "No thanks. It’s not a good fit" — and move on.

In my next post, I’ll explain how the last "troublesome" client helped me create a new policy that has spiked my earning power.

Business opportunities from home

Business opportunities from home can make a real difference in your life. Working from home offers the chance to make money, keep costs low and achieve work-life balance. But how do you separate business opportunities from home business and work from home scams? Take a look at my post on how to identify work from home scams for pointers.

Finding work you can do from home
may seem like a real challenge. But millions of people work from home, at everything from making jewellery and providing childcare to running multi-million dollar pharmaceutical and food processing businesses. The key is that work from home can mean many things.

Examples of business opportunities you can have at home:

  • A personal trainer may do all admin and marketing work at home, but travel to client sites to do workouts and classes.
  • A home daycare owner may offer childcare in the home.
  • A pharmaceutical sales rep may do lead generation and lead qualification at home, but travel around the world to close deals
  • A company owner may hire freelancers and outsourcing firms to carry out key business roles, so that there’s really only one person working directly for the company. And then that owner may simply work from a home office.
  • A home staging consultant may work from home for marketing, planning and administration, but also run meetings and do some arranging and decorating at the homes of clients.

What does a home-based business or work opportunity mean for you?

Related:

Friday 5: 5 reasons your business is failing

Via Lockergnome, this week’s Friday 5 looks at the top 5 reasons a PC consulting business may be failing. I know most of you are not in the business of computer tech consulting, but take a look at the article anyway. It may ring true for you.

I especially liked his tips about clients who try to drive down your consulting fees:

Haggle me once, shame on you, haggle me twice, there’s the door, buddy.

Never be afraid to fire a bad customer.

 

New look coming soon

I’ve been saying it for a while, but I really am getting ready to launch a new version of Consultant Journal. If you’re so inclined, you can check out the work in progress at beta.consultantjournal.com. We’re still working on the look and feel. And those ads are obviously fake.

But, stay tuned. There’s a new look in the works. And I’m hoping it will make this blog a lot easier to read.

Are you ready to rumble?

When you leave the world of paid employment and become a consultant, you need to change the way you think. That means no more Mr. Yes Man. (Or Ms. Yes Woman, as the case may be.) Upon becoming a paid expert — a consultant — you need to start standing up for your own beliefs. And you won’t be credible unless you stand your ground.

Over the course of your independent consulting career, you’re going to run into people who:

  • Knock your consulting fees
  • Question the approach you’re taking
  • Tell you you’re wrong
  • Argue that they’ve got a better idea
  • Decide not to implement your recommendations

Sometimes, it makes sense to listen to your clients. But, other times, it’s better to stand your ground. If no one every disagrees with you, you either have superhuman sales abilities or you’re doing something wrong. Consultants are experts and experts should, in theory, know more than the rest of us. So if people always agree with you, you might want to check over your work.

Related

Friday 5: ways bad reviews help

This week’s Friday 5 comes from Marketing Pilgrim: 5 ways negative reviews can actually help you.

I can’t say enough about tip #3:

Fix the problem. Research suggests that a customer will tell ten people about a negative experience with a business. However, if you fix the problem to their satisfaction, they’ll tell twenty people how happy they are!

This tip is talking about evangelical customers. I’m one of them. If I love a product, I tell everyone I know. But, if I have an awful experience, I’ll tell the world. In fact, I’ll even tell my blog, as I did with Soapopular.

Just recently, I wrote to a coffee shop to tell them that their clerk made fun of me and then super-heated my child’s mac and cheese. I could have just let it go and never made a purchase there again. But I did them a favour by writing to them and explaining why they’d lost my business. I haven’t heard from them, though. So now I’m telling all my associates why they should avoid that shop. I’d estimate they’ve lost thousands of dollars in business from me alone.

So, if someone says something bad about you, embrace it as a learning opportunity. And get thicker skin.

5 critical keys for your website

These days, just about any business needs a website. But if that website lacks tools to maximize opportunities, your income and business growth will be impeded. To be successful, your website needs to include certain elements:

  1. Contact Information. How else will you receive sales inquiries? Always include email or other contact details so people can get hold of you.
  2. Opt In Email. A little space for people to submit their email address so as to receive product and promotional updates can generate many sales down the road.
  3. "About Us" Section. Some don’t see the value in this one, but it really is important. You need a short bio describing who you are, what your company provides, how long you’ve been in business and any accolades you have received. It will make potential customers much more comfortable with you. If I stumble across a site that doesn’t have an "About Us" section, I find that I’m less likely to contact them. And I’m not the only person like that!
  4. Graphics. A website that is nothing but text is a real tough sell because it is dull and difficult on the eyes. Adding pictures, illustrations, graphics and so on will do wonders for improving the image of your business in the customer’s eye. And that will often make them more likely to contact you.
  5. Your name. Rather than hide behind a business name, inject some personality into your online image. People like to deal with people — not behemoth businesses. Look at including your name and a bio on your "About Us" page.

While these may seem like minor aspects, it is often those little touches that can make or break a website.

What would you include on any website?

Could you be making more doing something else?

If you’ve been working at your consulting business for a while, you may want to take another look at the business you’re in. It’s possible to get so wrapped up in what you’ve always done that you forget to take a look at the broader field. Sometimes, you can earn money from adjacent markets or by repositioning yourself.

When I started out, I was a freelance writer. After a while, I realized that I often spent a huge amount of time doing research, project management, communications planning and marketing strategy development. I repositioned myself as a marketing communications consultant and saw my market — and profits — expand. Later, I repositioned myself as a marketing consultant, allowing me to apply my business and numerical acumen in more profitable ways. Today, I do both business and marketing consulting.

If you always do what you’ve always done, you may miss out on opportunities. It may make sense to keep on doing what you’re doing. But ensure that you make an informed decision. Take some time to discover your inner consultant — consider all the things you could be doing. Find something that makes you happy — and that makes you money!

Related:
Become a freelance writer
Ideas for consultants you can become

Second anniversary of Consultant Journal

I’m all for celebrations. So here’s to the second anniversary of Consultant Journal! I started this blog on May 19, 2006. Since then, I’ve written hundreds of posts on everything from sales skills to consulting fees. I’ve added a couple of products — a consulting fees guide and a workbook to help you discover your potential in consulting. I’ve answered countless emails and responded to hundreds of comments. It’s been a busy two years.

Where would you like Consultant Journal to go in the next two years?

Top 5 ways to mean business

Tax time isn’t that far behind us and, well, you just know it’s going to be sneaking up again. Via the IRS website, I found a guide to telling whether your business is a hobby or not.

But, let’s look at things another way. What are five things you can do so that you run your business like a business and not like a hobby?

  1. Focus on profit — make decisions designed to help you make more money from your business. As always, set your consulting fees so that you make money.
  2. Pursue lifelong learning to help you run your business better (if you’re reading this, you’re already doing that)
  3. Plan to make a profit and generate a livable income — write a business plan and use it as a guide in building your business
  4. Build your business on your expert knowledge — you’ll be more likely to succeed if you have knowledge of the market you’re in
  5. Use contracts — you’ll be taken more seriously, even by the IRS.

Oh, and one bonus tip: separate your personal finances from your business finances.

What do you think distinguishes your business from a hobby?

10-minute strategy for making money

This year, I’ve tried to maximize my earnings while minimizing the time involved. This is because of injuries from a car accident and the time crunch involved in raising a young family. I’m happy to say that I’m getting more bang from my time than ever before.

Since the New Year, I’ve been focusing on a new strategy for making more money. I set a timer for 10 minutes and do nothing but revenue-generating tasks for that time. I’m not sure where I first hear the idea — probably The Four Hour Workweek. But, wow, has it been effective.

I stop and do nothing but earn money during those 10 minutes. No answering email. No surfing the web. No checking phone messages. No taking phone calls. All I do for 10 minutes is work at things that pay.

The result? I’ve reduced my non-billable hours. And I’m whipping through projects like never before. Since I usually work by the project when I set my fees, I’m making more money…while working fewer hours overall.

Wow. Try it. It only takes 10 minutes. Just do stuff that results in revenues for 10 minutes.

Travel time charges

What do you do about travel charges, when a plane is delayed? Ella posted a comment in my article about billing travel time charges. She wrote:

I am a consultant for now (my client said that he will make me an employee after a trial period, but didn’t specify how long). I recently had to go on a business trip with him for 3 days and not sure how to bill for it. The cab picked me up @ 6:30 AM on Monday to take me to airport and after we landed we went to see the client and then company dinner. After that to hotel (did a little work on computer as well). Then conference/another party and back to hotel. Last day conference until 6 then airport – my flight was at 9 PM and got delayed, so cab brought me home by midnight). I would really appreciate your suggestions. Thank you.

Here’s the thing. You should iron out travel time fees before you start work. Get it in writing — use a contract. This can help avoid headaches later.

In Ella’s case, it’s especially tricky because she’s hoping to become an employee of the company in question. Right now, she may not entirely have a consulting role — she needs to look at whether she’s an independent contractor or an employee. If she really wants to work for this company as an employee, she doesn’t have as much leverage as if she’s a contractor.

It’s hard to give Ella concrete decisions, because I’m not aware of the terms of her contract. And she may need to act more like an employee, if that’s her goal for this work.

If you’re an independent consultant, you can be a little more forceful about how you deal with this situation. You’ll still need to look at how you’ve structured your consulting rate — by the hour, project, day and so on.

What would you tell Ella?

Did you sleep in late again?

The consulting life can be awfully decadent sometimes. Work when you want. If you want. How you want. Where you want. In whatever clothes you want. But sometimes that lifestyle can get the better of you…meaning it’s time to get yourself in gear again and reset your natural rhythms.

For me, that became painfully clear on September 11, 2001. I woke up around 10:30 am Pacific that day. I got up, drank some coffee, checked my email…saw some message about the WTC from a friend. Thought it was something to do with her work, since she was an emergency preparedness planner. Went back and checked her email again. What was that about planes and towers and crashes?

As I watched the TV in horror, I realized that the rest of the world had seen those images hours before.

At that moment, I decided I needed to bring my day back into alignment with the rest of the world. I started getting up earlier. I’m still never one to be at my desk by 9 am…heck, some days I don’t get to my desk till mid-afternoon. But I do have waking hours a little more like those of the rest of the world. Besides, I have kids now…6 am is no longer a foreign concept. And sleeping in is a thing of the past!

Related

My top 5 business interests

Via Trevor Speirs of MyTechnologyCompany.com, I found a top five list of business interests. And that got me thinking about my own interests.

I’ve got a list of my passions on the website of my marketing company, but what about right this very minute?

So, off the top of my head:

  1. Improving productivity
  2. Social proof in a business context (I talked about this in my recent newsletter — you can sign up in the top right of this page)
  3. Lead generation
  4. Growing a business to the next level
  5. Technology

How about you? What are you thinking about right now?

5 ways to promote your business online

It is safe to say that the Internet provides a valuable resource for promoting a business. Thanks to the World Wide Web, even a small localized business can reach hundreds of thousands of potential customers. Of course, this will require taking certain steps to drive traffic to your site. Here are five ways to do just that:

  1. Search Engine Optimization. If your website is not prominently placed in the top 30 listings of the major search engines then your business will be at a significant traffic disadvantage. This is why link building strategies, such as submitting links to web directories, are highly recommended.
  2. Promotional Blogging. There are over 70 million regular blog readers worldwide so why not tap into that market through promotional blogging? Publishing a few interesting blog entries per week about topics related to your business will raise awareness of your company as people surfing the net discover the blog entries about it.
  3. Social Networking. Social networking sites like Myspace or Facebook provide a completely free format to promote your business to millions of members. Using these social networking services for promotional ventures is growing in popularity and for good reason…it works!
  4. Direct Email Campaigns. This is a tried and true method of Internet marketing. Sending promotional "broadcast" emails to interested parties can help inform  your contacts about sales, deals and new products and services.
  5. Article Directories.  Writing short articles on a subject related to your business and submitting them to popular article directories works especially well if the articles include links to your site. Remember, the articles are indexed in search engines and promoted in RSS feeds, providing your website with greater exposure.

All five of these methods are quite simple and effective ideas. If you put these ideas into play, you’ll likely see an increase in incoming leads. It works for me.

Are you ready to talk numbers?

When you walk into a meeting with a client, are you ready to talk numbers? Whether a client wants to know your hourly rate or your quote for an entire project, you need to have a handle on your numbers before you meet.

That’s not to say that you need a firm estimate for a project. You should never give a firm quote without having time to think a project through. However, you need to understand that a client will want to have an idea of a project’s cost. You’ve got to have a plan for handling questions — and objections — about your fees.

When a prospective client asks me about my fees, I tell them my hourly rate, but add that my rate isn’t nearly as important as the project total and the value they’re receiving. If I can do the work three times as fast as someone charging half what I do, I’m actually the better value. It’s also important to get my clients to talk about the value they’ll receive from the project, so that they have more of a focus on what they stand to gain than what they stand to spend.

I talk about handling client objections to price in my Consulting Fees Guide. What steps do you currently take to prepare to talk price in client meetings?

Related to consulting fees

Top 5 business trends

Via Nuwire, here’s a list of the top five business trends:

  1. Outsourcing
  2. Exporting
  3. Senior living
  4. Global tourism
  5. Internet-related business

Add those to your list of ideas for consulting businesses, whether you’re trying to Discover Your Inner Consultant or simply reposition your existing business.

As a consultant, I am certainly taking advantage of the trend in outsourcing. Heck, I even outsource some of my work to other consultants. I also export my services to clients in other countries — and I sometimes hire consultants from other places, too. One of my clients specializes in global tourism, so I’ve had to research that market. And both my marketing company and Consultant Journal are Internet-related.

The only trend I have yet to pursue is senior living.

How about you?

More on staying true to the cause

In Stay true to the cause, I talked about meeting the goals you set when you started your business. In the past few years, I’ve found a great way to stay true to my goals. I outsource — to other consultants.

Yep. I focus on what I do best and try to hire other people when time or experience prevent me from "doing it all". I’ve learned that, if I can hire others to help me meet my goals, I’m still going to meet my goals.

To hire other people, I’ve had to loosen up a bit. I used to think that no one else could possibly deliver the same work that I can. Well, I was right about that. No one else has the same overall standards, experience and skills. But I don’t need to hire people who are just like me. I just need to hire people to do parts of what I can do. I can still add value to the work they do, all while reducing my overall workload and increasing my productivity.

So, here’s today’s question: what work could you outsource?

Stay true to the cause

Consulting can give you the freedom to do anything you want. Take Fridays off. Be home for your kids. See matinees. Take your aging parent to the doctor’s office. Semi-retire. Travel the world. But are you really staying true to the cause?

IT consultant Alex Williams notes that he originally aimed to take Fridays off and meet some other goals. Still, he often finds himself working Fridays. But he notes:

What I didn’t fully understand – and it didn’t take long to figure out – was that I was the one and only person who could mess with that dream. I was the only one who could alter it, and I did.

If your consulting business isn’t aligned with your dreams and goals, take some time to re-focus. Sometimes, you just need to ask yourself what’s important. I know I’ve fallen prey to the entrepreneurial trap before. For example, when I came home from the hospital with my first baby, I got a dream call from a reporter who wanted to interview me. I started thinking about prepping for the interview…then realized that my four-day-old baby needed me more. It was hard to step back from such an opportunity. But I realized that, 10 years before, I’d got into consulting so I could have work-life balance.

Do you struggle with focusing on your true consulting goals?

Stay true to the cause

Consulting can give you the freedom to do anything you want. Take Fridays off. Be home for your kids. See matinees. Take your aging parent to the doctor’s office. Semi-retire. Travel the world. But are you really staying true to the cause?

IT consultant Alex Williams notes that he originally aimed to take Fridays off and meet some other goals. Still, he often finds himself working Fridays. But he notes:

What I didn’t fully understand – and it didn’t take long to figure out – was that I was the one and only person who could mess with that dream. I was the only one who could alter it, and I did.

If your consulting business isn’t aligned with your dreams and goals, take some time to re-focus. Sometimes, you just need to ask yourself what’s important. I know I’ve fallen prey to the entrepreneurial trap before. For example, when I came home from the hospital with my first baby, I got a dream call from a reporter who wanted to interview me. I started thinking about prepping for the interview…then realized that my four-day-old baby needed me more. It was hard to step back from such an opportunity. But I realized that, 10 years before, I’d got into consulting so I could have work-life balance.

Do you struggle with focusing on your true consulting goals?

Top 5 ways to hide ugly Google results

Have you ever looked yourself up in Google? More importantly, have your clients ever looked you up in Google? Would they be happy with what they find?

If you’ve got a common name, like Tony Wong or Joe Smith, you may not be worried about Google results for your name. However, what if you have a unique name? Will your online history haunt you?

Fortunately, with a little work, you can promote "good" results to the top of the search engines. Here’s how.

5 ways to push good search returns to the top of search engines

  1. Get your own website — and be sure to include your name.
  2. Submit articles to online directories, such as ezinearticles. As an article author, you’ll receive a profile page and your name will show up in search returns for the articles, too.
  3. Sign up for LinkedIn and other business networking sites and set up a public profile. (Here’s mine.)
  4. Set up a business blog — again, include your name. And keep it professional, so that you don’t have to go back and hide search results from that site.
  5. Contact any sites that contain embarassing or private information about you. They *may* be willing to remove it. It never hurts to ask.

Client humor

Via Adverbatims, a real gem of a site, I found this quote:

#381- "If I give you approval, what can I still change?"
(Client, Marketing Manager)

Clients aren’t the only people who say funny things, but the above quote cracked me up. I’ve run into clients who’ve made some pretty interesting demands over the years.

Once, when I delivered a new ad for a struggling restaurant, the chef/owner changed the copy at the production site. Although he was facing his second bankruptcy with the same restaurant and he was paying me big bucks to come up with a new advertising campaign, he insisted on changing the text at the last minute.

The restaurant went bankrupt a short while later.

What’s the scariest thing about consulting?

I jumped into consulting when I was still wet behind the ears. My mom bought me a t-shirt that said, "Fear: the thief of dreams". She saw me as a risk taker.

Well, I wouldn’t say I was fearless or that I had nothing to lose. But I was confident in my goals. I’d been planning my launch into consulting for a long time. And I became a consultant a little bit at a time. I’d figured out  what consulting I should do, written a business plan, set my consulting fees, established an emergency fund and so on. It wasn’t that I was fearless — it was that I had a plan.

For me, the scariest thing was that I’d stay in a 9 to 5 job and never pursue my dream. I was worried that I’d never feel the satisfaction of:

  • landing my first client
  • handing out a business card with my own company’s name on it
  • telling people I owned a consulting business
  • getting my first contract signed
  • cashing my first check from a client
  • growing my own business

What do you see as the scariest thing about consulting or starting a consulting business?

Top 5 reasons to join LinkedIn

Do you use LinkedIn, the social networking site for business? If you don’t, you may be missing a valuable opportunity to make connections and increase your visibility.

5 reasons I use LinkedIn:

  1. I’ve made a lot of connections — ranging from new clients to people with whom I wanted to do business.
  2. The site’s features make it easy for me to get introduced to high-profile people, with whom I previously wouldn’t have known how to get into contact.
  3. The privacy settings allow me to manage what information is available to the public — and I can make sure I’m not connected to just anyone.
  4. LinkedIn can help you gather background information for sales calls and proposals. You can even check your network to see if you know anyone working at a particular company — or if any of your contacts know someone who can give you the inside scoop.
  5. By helping other people connect with my own contacts, I build stronger relationships with my existing contacts. (It never hurts to be a nice guy!

Here’s my LinkedIn profile.

The power of customer service

Customer service can make an incredible difference in professional services business, such as consulting. Regular Consultant Journal reader Tony Rose blogged about his experiences with customer service at a major department store. I especially liked Tony’s last paragraph:

No matter what business you are in, excellent customer service will help you win and keep loyal customers. Even when your prices are higher, people are willing to pay more for convenience, quality and peace of mind.

As you go through the process of setting your consulting fees, remember that the value you bring to your clients is part of the package.

It’s tax day in the US

It’s tax day today in the US. If that’s a surprise to you, you should look at hiring a bookkeeper or accountant next year — or call the tax office and file for an extension!

Related:

Sparkline — a word I learned

Sparkline. The word stood out when I was reading Tony Rose’s Decision Support Analytics blog recently. I’d never heard of a sparkline before. So I went looking for a definition. Apparently, Edward Tufte invented the sparkline. He defines sparkline on his website as “data-intense, design-simple, word-sized graphics”, but I prefer the explanation over at Wikipedia, since it includes examples of the graphics. Apparently, they’re intended to be used within text, like symbols in a sentence. Call them modern-day hieroglyhics.

I love the concept of a sparkline. I’m hoping to start using the symbols in my reports and marketing tools. In the past two decades, we’ve seen symbols surge in use — just look at the pictures in the navigation bar of your browser. So it’s inevitable that pictograms would show up in written text.

Related to sparklines

 

Top 5 ways to thank your customers

Via Fast Company’s Innovation blog, I found the top 5 ways to thank your customers.* I’d like to draw your attention to #3:

3. Use your data base for them, not against them. Select a loyal customer at random and surprise them with a free gift or a discount. Refrain from congratulating your customers for being loyal with yet another sales pitch. Just send the gift.

Fantastic. My phone company recently used a similar ploy. They called and discounted my monthly bill by $8, simply because I’d been loyal. This outbound loyalty campaign made me feel better about being their customer — and likely ensured that I wouldn’t feel the need to shop around.

*rapidly decaying link

Where’s Waldo? Creative thinking.

Where’s Waldo? On a Vancouver roof! You may have run across Waldo, the bespectacled, stripe-shirted guy, at some point in the 80s or 90s. Well, a Vancouver art school student has constructed a giant Where’s Waldo character on a Vancouver roof to make her own Google Earth game.

What’s this got to do with business or consulting? Well, the art student has taken something that’s "been done" and given it a twist. You probably thought Waldo had gone the way of Trivial Pursuit, neon shirts, and friendship bracelets. But this simple art school project has revitalized Waldo. So, if you’ve been putting off starting a business because you think everything’s been done, you might want to stop to Discover Your Inner Consultant.

A little mistake that cost a consultant $2875

Excited about closing a new consulting deal, Edward rushed to start the job. Mary, a VP at a local software company, had agreed to hire him to develop several sales tools to help sell software to call centers. He worked furiously on the new project for several days and fired off a draft and a status update at the end of the week.

Edward* didn’t hear anything for a few days, so he waited a little longer. At the end of the next week, he followed up with a phone call. To his surprise, he heard an unfamiliar voice. “Uh, I was looking for Mary,” he said, uneasily. “Oh, Mary’s no longer with the company,” replied the voice.

Although Mary had agreed to hire Edward, she had never kept any documentation. And Edward had simply started the project, thinking that a verbal deal was enough. But, even though a verbal deal is legal where he lives, Edward had a hard time convincing Mary’s boss that a deal had ever existed.

Fortunately, Edward was able to file in small claims court and win his money back. But it took a considerable amount of time and energy. He spent hours preparing for the court case and, even after he won, he still had to follow certain processes to get his money back.

Between chasing after the delinquent client and preparing for the court case, Edward spent about 75 hours of his time. Given that he usually billed out at $65 per hour, he lost $4875 in earnings that he could have made from other clients. Even though he won $2,000 from Mary’s former company, Edward never made up for lost time.

What could have saved Edward? A simple written contract.

Even if you live in an area where verbal contracts are legal, it’s always easier to have something in writing. Check out the contracts and legal documents from our affiliate program at US Legal Forms.

*Names have been changed.

Mixing business and friendship

Consulting tends to be a people business and people like to do business with people they know. Every so often, you may be approached to by a friend who has a great personality but makes a lousy business partner.

Many years ago, I fell ill and knew I wouldn’t be able to complete a project. My client knew one of my friends and asked if I’d feel comfortable with him finishing the project. I said I wasn’t sure he’d be a good candidate. But the client was desperate to have someone put the finishing touches on my project and couldn’t wait for me to recover (it was a major health issue).

Well, the friend – let’s call him Joe – had some experience and skills that were similar to mine. But that’s where it ended. Joe had absolutely dismal writing skills – and this was a writing project. The client asked me to mentor Joe, but I knew it was a lost cause. Joe really couldn’t write. My client soon realized their mistake in inviting Joe to work on the project. I ended up having to take over Joe’s work from my sick bed. I had to work like crazy to finish the project. And Joe was miffed that someone thought his writing skills needed work. His nose got out of joint and I don’t think he ever recovered. I learned my lesson – I never again worked on a project with someone who struck me as less than solid in their professional skills.

In the situation above, I was very ill and had a desperate client. Normally, I wouldn’t have partnered with someone like Joe. But I know other consultants who fall prey to social pressures over and over again. They end up taking on a partner because they want to preserve a friendship.

If you want to preserve a friendship, don’t do business with a shaky friend. What’s that saying? Don’t mix business and friendship? It’s bang on.
 
Should a friend ask you to work with them when you think it’s a bad idea, you can:

  • Say that you don’t like to mix business and friendship
  • Thank them for the compliment, but say it’s not a good fit right now.
  • Let them know the timing isn’t right – this leaves the door open for future work, since, down the road, they may have a better skill set or approach.
  • Point them to someone else who can help

Related to business and friendship

Major site outage…ouch

For unknown reasons, my site crashed this past week. Ouch! I was out of town and I don’t know if that had anything to do with it. It crashed the last time I was out of town, too! I’m sure most of you have little interest in my web server, but I did want to let you know that Consultant Journal is still around!

Posts you may have missed include:

Sorry about the site outage. I’m investigating the problem.

Top 5 ways to thank your partners

In running a business, I run into numerous situations where I owe a thank you to someone. More often than not, that person is a vendor  — such as a graphic designer, printer, paper supplier, accountant, coach, advertising rep or web developer. The reasons to thank them can range from receiving a referral to a cost-saving tip.

Top 5 ways to thank your vendors

  1. Send a real thank you card. In this electronic age, a handwritten card will make your thanks stand out.
  2. Refer them. Connect your vendors to others with similar interests or needs. A great benefit is that you build a community. I’m happy to know that my graphic designer, printer, subcontractors, and even my clients can pull together on various ventures.
  3. Send a gift certificate. One of my business partners recently sent me a gift card to her favourite restaurant, because I’d referred several projects to her. I was thrilled by her thoughtfulness.
  4. Promote them. Mention your vendors on your website, blog or in your newsletter. As a bonus, your clients may see you as well-connected and in the know.
  5. Email their boss (if they have one). Managers love to hear that their people are doing well. A thank you sent to the boss can have positive effects on your vendor’s career.

How do you thank your vendors?

Should you break an NDA to woo a client?

You’re in the middle of a meeting with a prospective client. You want this client’s business so bad it hurts. But the prospect has asked the million dollar question: "Who are your clients and what have you done for them?"

It’s tempting to rattle off the names of your clients, the problems they faced and the things you’ve achieved for them. But providing too much detail may put you in ethical, if not legal, hot water.

If you’re under a non-disclosure agreement, you can’t identify your client or provide identifying information about their business problems. Even if you’re not under NDA, it’s not really right to talk behind your clients’ backs. So what can you do about this?

How to win clients while respecting client confidentiality

  • Describe the client, not their name. "I worked on a project for a major brand name beverage company".
  • Deflect requests for the client’s name. Say "I’m under NDA and I need to respect my client’s confidentiality" or "I’m not in a position to name the client, but I can provide some examples of what I did for them…."
  • Collect testimonials from existing clients.
  • Ask your existing clients to provide references — but rotate them, so that you don’t end up with annoyed clients.
  • Stick to your guns. If you’re protecting a client’s privacy, you shouldn’t reveal details, no matter what the means of communication. If you wouldn’t write it in an email or proposal, you shouldn’t be willing to divulge it in person either.

Related

Keep a calculator handy

Years ago, I took Philosophy 101. I thought I was a pretty good student. One day, the prof asked if anyone had a calculator handy. I said, "Why on earth would philosophy students have calculators?" The prof replied, "Well, surely you people take other courses!" It was all pretty funny back then, but I’ve since learned to keep a calculator handy.

I do most math in my head. But, if you’re in a meeting with a prospective client, a calculator can help you work through sales deals. You can estimate costs, hours, margins — anything that involves numbers. A calculator can help you decide whether to take on a job or whether to negotiate a better deal.

If you don’t have a calculator in your briefcase, think about buying one.

Friday 5: Top 5 reasons marketing drives you crazy

This week’s Friday 5 comes from Lauren Tarne at the Go Big Network: Does Marketing Make You Mental? The Top 5 Reasons That Might Be the Case.

As a marketer, I love reason #1:
Collateral Confidence — You depend on your business cards, letterhead, tri-fold brochure and basic website to do the marketing for you.

Business cards, letterhead, brochures, websites and even ads and direct mail are just marketing tools. There’s a whole lot more to marketing. For some reason, many people think that, if they’ve got brochures, they’ve got marketing plans in place. Too many small business owners think that, in hiring a graphic designer or writer, they’re doing "marketing". Marketing really involves connecting buyers and sellers. On their own, brochures and websites don’t do much. It takes strategic planning to develop a market and build a business.

Achieving a 4-hour workweek

Back in December, I noted that I was planning to read a book by Timothy Ferriss called The 4-Hour Workweek. I read the book in early January and have finally got around to implementing some of the ideas.

Although I don’t advocate everything in the book, it certainly got me thinking about ways to streamline my work processes. In fact, since reading the book, I’ve hired two subcontractors to work on projects for me. I’ve worked with subcontractors before, but usually just when I wanted help during a busy time or when I didn’t have the skills to do a project. This time, I’m hiring people to do work I could do myself — but that someone else could do more cheaply. (And I’ve hired people in my own town, as opposed to sending the work across the planet.) It’s going really well and I’m going to continue with this.

Have you experimenting with subcontracting?

Related

Do you need a laptop computer?

I’m a computer junkie. I’ve had a computer since I was about eight years old. Before that, I used to stand in the computer section of Sears, pining for the chance to play the Pac-Man clone. However, as much as I love computers, I held out a long time before moving up to a laptop.

In fact, even though I was consulting in the 90s and early 2000s, I stuck with a desktop. I did all my work from home and rarely had a need to bring a computer anywhere. But, a few years ago, I decided it might be nice to be able to take a laptop computer to the library, hotels, vacation destinations and even my parents’ house.

Still, most of the time, I find packing up my computer is a big effort. So I usually leave it at home. But, when I do want to tote it along, at least I have the option. A desktop computer isn’t portable at all, unless you’re comparing it to an old mainframe!

How often do you raise your rates?

This morning, I was astonished to discover that someone I know has been charging the same consulting fees for TEN years! Ten! And, not only that, this consultant only charges $50 an hour!

Yikes! If this consultant had merely increased fees at the rate of inflation, they’d be charging $61 an hour now. I mean, $50 today was worth about $40 ten years ago.

Not only that, by keeping rates flat, this consultant hasn’t allowed for any increase in skills or experience. Do you know more than you did 10 years ago? Do you do your work better? Faster? I would hope so!

In fact, if this consultant had increased rates at 5% a year, signalling a strong belief in skills and experience development, they’d now be billing over $80 an hour.

Wow. When I look back at what I was charging 10 years ago and compare it to my current rate, there’s been a huge increase. In fact, in my first year of consulting, I raised my fees 43%. And, four years ago, I raised my fees 56%. And I’ve increased my fees every year — those are just big jumps. In fact, I now bill 386% more than I did 10 years ago.

My consultant friend is leaving money on the table. Are you? Check out my Consulting Fees Guide.

 

Friday 5: stranded at the airport

This week’s Friday 5 covers the top 5 things to do while stranded at the airport. Consultant Steve Woodruff provides several goofy ways to spend your time in the airport terminal.

I haven’t travelled for business much recently, but, in 2003, I went on a big sales jag that saw me to Des Moines, Chicago, Oakland, Miami and a few other places. In my case, a laptop loaded with a few games was enough to burn time at the airport.

Your sphere of influence

As consultants we can often get caught up with finding the next contract, but are we looking in the right place? Although important to garner new clients, sometimes we let our past clients wither away. It’s easy to do as we get caught up with one contract after another. It’s unfortunate though because our past clients can offer up referrals or simply have more work for us, this is known as our “sphere of influence”.

For example, real estate agents are consultants that specifically market themselves to their sphere of influence. They know that success in their industry is built on a foundation of past clients that will either use their services again or pass on referrals. My realtor sends me a calendar each year to remind me she is still in business.

The key word here is “influence”. You have the opportunity to influence your clients, so think of innovative ways to ensure you are the consultant they think of first when they need one.

Related to finding new clients

Green with envy?

It’s St. Patrick’s Day, which has me thinking about all things green. And, speaking of green, are you someone who falls prey to consulting envy?

If you’re self-employed (or even just thinking about it), it’s easy to think everyone else is doing better than you are. I know I’ve fallen into this trap. I frequently compare my business to that of a friend. But my friend doesn’t even work in consulting! She doesn’t have a business model remotely similar to mine. Yet I often find myself comparing my own business to how well I perceive hers to be doing.

Guess what, though? I recently discovered that I make more money than my friend does. And I found out that her business costs are much higher than mine. See what a waste my envy was?

If you’re lying awake at night, thinking you’re not up to snuff because you assume others are earning far more, try a new strategy. Look at what others are doing and figure out a way to learn from them. Because of my friend, I’ve branched into new business areas. I’ve come up with a modified business model that allows me to generate recurring revenue, for example. So, while envy on its own isn’t a good idea, learning from others’ success can help you grow.

Friday 5: why avoid sole proprietorship

In starting and growing a consulting business, you face many decisions. One of the earliest decisions you need to make involves the structure of your business. Should you set up a sole proprietorship, partnership, corporation or some other structure? Nina Kaufman offers this discussion of the reasons to avoid sole proprietorship.

However, even if sole proprietorships offer some drawbacks, you shouldn’t beat yourself up for running one. Incorporation involves a higher level of organization, record keeping and business management. Sole proprietorships can be extremely flexible — and they’re cheap and easy to set up. I launched as a sole proprietorship and, although I now have more than one business, I still enjoy the flexibility of such a business structure.

Staying on top of receipts with Neat Receipts